Answers with Andrew addresses estate planning as it relates to motor vehicle title transfers after death. This is one of the most missed areas in estate planning. People plan their estates to avoid probate. Probate occurs where assets that are held in one person’s name without a beneficiary, or a trust, must be dealt with upon that person’s death.

When a person dies, assets held in only their name individually can often become probate assets. As it relates directly to motor vehicles in the state of Ohio, their transfers upon death fall into two classes. The first class is for transfers between spouses who are legally married, and one spouse has died. The law says that you can transfer an unlimited number of motor vehicle titles (cars, trucks, boats, trailers etc.) up to a cumulative value of $65,000 when it is your spouse. For married couples, we want to make it simple for a surviving spouse to acquire the vehicle.

The second class of motor vehicle transfers involves all non-marital transfers. Three methods of transfer exist for this second class. Take it through probate, Transfer on death, or Trust Owned. While we almost always advocate for avoiding probate, If the estate is small enough, and a vehicle title is missed and left behind as a probate asset by a decedent, there are sometimes ways to fast tract the transfer through relatively simple probate processes. If you face this situation and need further instructions on your options, please reach out to our office.

In situations where there are motor vehicle titles in excess of the cumulative 65,000 for spouses, or in non-spouse transfer situations, we often recommend using a Transfer on Death Designation added directly to the title, or in some cases adding the vehicle to the Family Trust. A Transfer on Death designation avoids probate because it goes outside of probate. You simply list the beneficiary or beneficiaries that you want to transfer the vehicle to upon your death and when you die, they can come in with a certified copy of the death certificate and the title will transfer to them without having to go through probate.

In situations where trust ownership is the desired method of transfer, there are some things which must be taken into consideration. If you own your vehicle in a trust, then upon your death, the trustee should follow the Trust’s direction as to which beneficiary should receive a specific title etc. If there is no specific bequest language in the Trust, the Trustee may sell the vehicle and split the proceeds in accordance with the residue clause in the Trust. The advantage of doing it this way is that you can avoid probate, but you also have control over who gets the vehicle and when they get it. It is important to always keep your insurance company apprised of any transfers of your vehicle ownership from your individual name to the name of the Trust. While this will not likely cause any issues, failure to do so could cause a lapse in coverage.

If you have any questions about estate planning or motor vehicle title transfers after death, please contact us at [ Ссылка ].

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