What happens with my car at my death?

By Attorney Alexander Pagnotta

A car is an asset that many of us depend on in our daily lives to get to work, take the grandkids to school, and run our errands. We put effort into caring for our vehicles, so we want our family to enjoy it after we pass away. Whether you own one car or a collection, it is important to plan so that transfer will occur seamlessly at death. It is crucial to review the title of the car, whether it has a lien, and who will have access to it if something happens to you. 

When sitting down to plan your estate, your car should be discussed with your estate planning attorney. There are several options in how to leave your vehicle. First, you may choose for your car to be left through a specific bequest in your Will or Trust. You may want to consider who needs a vehicle, where the person lives, and if that individual can maintain and insure the car. Second, you may choose not to leave it to a specific person, but direct your Personal Representative or Trustee to sell the vehicle and distribute the proceeds to an individual or group of family members. Also, you may give discretion to your fiduciary to donate your vehicle to charity. Estate planning documents allow for other planning language and should be discussed with your attorney to help meet your specific goals.

In some cases, an owner may choose to designate a beneficiary before death. In Maryland, the Motor Vehicle Administration (MVA) now provides a form that the sole registered owner on the title can select an individual to receive ownership of the vehicle upon their death. As the designation must be made before the death of the individual, the vehicle will not be considered part of the probate estate. Therefore, a Letter of Administration will not be necessary to present at the MVA to complete the transfer. Certain requirements and guidelines must be met to utilize this method and are available through agency publications.

In planning ahead, it is prudent to advise your Personal Representative or Trustee of the location of your keys, or spare key. Also, it is essential to provide current information on who insures your vehicle and whether there are any liens against the vehicle, including judgments, secured notes, or other outstanding legal issues. In addition, it is recommended to keep a list of all makes and models of vehicles, especially as it is common that an estate may have several vehicles.

Keeping a list with information and the location of the vehicles may assist your estate in tracking your assets. Also, it will help your fiduciary plan if there is an outstanding lease, loan, or lien on the vehicle to avoid potential issues, unexpected repossession, or loss of value to your estate. Leaving clear instructions through your estate plan may help prevent unauthorized usage of your vehicle after your death and possible liability issues for the estate if there is an accident or other mishap. Your estate will usually keep the vehicle parked until proper transfer and distribution can occur.

Considering these recommendations should ease the administration of your estate and ensure your vehicle transfers to the intended beneficiary smoothly.
If you are looking for strategies to safeguard your assets and legacy, please join us at a FREE upcoming estate planning seminar. To view available dates and times, please visit www.spgasior.com/seminars or call our office at (410) 573-4818.