Of all the details and responsibilities that come after a loved one’s death, it’s easy to forget about transferring a vehicle title. Yet even if it’s the surviving spouse who is claiming the car, there is a legal process for transferring ownership. If you’ve recently received a car after a friend or family member’s passing, here’s what you should know.

Assets are distributed as per the will during probate, including vehicles. Probate is the legal process following a person’s passing, involving executing their will or appointing an administrator if there’s none. If no will exists, state laws apply. 

What is probate? 

Probate is the legal process for distributing a person’s assets after they have passed away. It involves executing the deceased person’s will (if there is one) in court. If there is no will, the court appoints an administrator to distribute the assets according to Tennessee state laws.

During probate, the executor or administrator identifies the deceased person’s assets. They also settle outstanding debts and taxes using the estate’s funds.

Once debts are cleared, the remaining assets are distributed to beneficiaries as outlined in the will or determined by intestate succession laws. This process involves filing necessary paperwork and obtaining court approval. 

When it comes to vehicles, transferring ownership to a surviving spouse is fairly straightforward. The procedure can get more complicated if the car is going to a non-immediate family member or being sold.

The transfer process is the smoothest when a surviving spouse already has joint ownership of the vehicle or the will designates the surviving spouse as the inheritor.

If the car was owned by both spouses with both names on the title, retitling is simple. 

The surviving spouse needs to bring the existing title and the original death certificate to the DMV or equivalent agency. In Tennessee, this is the county clerk’s office.

The surviving spouse will then complete a transfer form and apply for a new title. There’s no cost to do this within one year of death.

If the car was owned solely by the deceased owner, then things are a little different. In this case, the vehicle goes directly to the surviving spouse and the kids. At the local county clerk’s office, the surviving spouse must provide the:

• Original death certificate of the deceased owner
• Car’s title
• Required identification for both spouses

Any adult children will need to sign off on the affidavit of the inheritance.

They will then fill out the necessary forms, which usually include an application for transfer of title and registration. They will also need to pay any associated fees for the title transfer, registration, and taxes if applicable. It’s important to check with your local agency for specific requirements, as they may vary by jurisdiction.

Inheriting a vehicle in a will

Inheriting a vehicle as someone other than the surviving spouse follows a similar procedure to the above. However, in this case, you will need the existing certificate of title signed by the executor or administrator of the estate. This ensures that the vehicle’s ownership record reflects the new owner. You will also need the deceased’s death certificate to complete the process.

Keep in mind, a verbal promise is not the same as a bequest in a will. For example, if a man promised his truck to his son after his death but didn’t explicitly make that statement in his will, the vehicle needs to follow the intestate procedure described below.

If an heir is named in the will, the estate’s probate process plays a role. For example, if the estate is still in probate. If not, you can go ahead and complete the title transfer on the vehicle’s title certificate. Take that with the death certificate, original title, and identification to the clerk’s office. 

You will need to cover any fees and taxes that may be included, which can vary depending on the vehicle’s value. You should also update your insurance policy and provide a copy of the new title. Register the vehicle in your name at the clerk’s office if required, as well.

Be sure to keep all your transfer-related documents during this process. This includes the old title, death certificate, and any receipts you may collect. Verify and follow any specific local requirements since they can vary.

In Tennessee, if a person passes away without a will (intestate) and there is no surviving spouse, then the will typically follows the state’s intestate succession laws. This is for the distribution of assets, including a vehicle.

If there are surviving children but no surviving spouse, the children would usually inherit the estate equally. In this case, the children would need to agree on who gets the car. The sibling who inherits the vehicle would then need an affidavit of inheritance of a motor vehicle signed by the other siblings. The same process is required if all the children decide to sell the vehicle to a third party. 

Do you pay taxes on an inherited vehicle?

When you inherit a vehicle, won’t incur taxes on the transfer itself. However, if you decide to sell the inherited vehicle, it’s important to consider potential tax implications. 

If you choose to sell the vehicle to a family member, like a sibling or a child, the transaction is generally viewed as a non-taxable event. This means you usually won’t owe taxes on the sale. 

What if there’s a dispute over the vehicle?

Court is rarely if ever worth it if it’s only over a vehicle. That’s because you’ll end up paying more in legal fees than the vehicle is likely worth. However, if probate has been mishandled as a whole with a large sum of money at stake as well as a vehicle is involved. If this is your situation then contact our office to discuss your case. 

Do you need help with probate in Tennessee? Contact us today to schedule a consultation!

Probate is the legal procedure after a person’s passing, which includes executing their will or appointing an administrator if there isn’t one. Assets, including vehicles, are distributed according to the will. In the absence of a will, state laws come into play. Taxes on inherited vehicles are contingent on sales. In case of disputes, a probate attorney can mediate or provide representation in court to secure rightful ownership.

At Johnson, Murrell, & Associates, we understand that handling a loved one’s estate and bills after their passing is an emotional, stressful experience. Our job is to make your life easier, which means guiding you through the process so you understand what’s to come. To schedule a consultation, call us at 865-453-9943 or schedule an appointment.