Transferring Vehicle Ownership After a Loved One’s Passing in Boerne

Losing a loved one is never easy, and managing their affairs afterward can be complex and emotional. One important, but often challenging, task is transferring ownership of a deceased person's vehicle explains a Capital One article. As a probate law firm in Boerne, our team at McCammon Law frequently assists families through this process to help ensure a smooth transition. Here, we outline key steps and options for handling vehicle ownership when it becomes part of an estate in Texas.

What Happens to a Vehicle When the Owner Passes Away?

After someone passes away, the transfer of their vehicle will depend largely on three factors:

• Whether the deceased left a will,
• If the title includes a Transfer on Death (TOD) designation, and
• Whether the vehicle is part of the estate undergoing probate.

Each of these factors can affect the steps required to transfer ownership, as well as the time it might take to finalize the process.

If There’s a Will with Vehicle Instructions

In Texas, if a deceased person leaves a will that includes specific instructions for their vehicle, the probate process will likely honor these directives. For example, a vehicle might be left to a designated heir directly through the will.

If the vehicle title includes a Transfer on Death (TOD) provision—a relatively simple addition that allows direct transfer of the vehicle upon death—this can streamline the process significantly. In this case, the designated beneficiary will need to visit the local Department of Motor Vehicles (DMV) with:

• A valid ID,
• The vehicle’s title, and
• The owner’s death certificate.

The TOD allows beneficiaries to skip the probate process altogether for that vehicle, expediting the transfer.

Read More: What’s the Best Thing to Do with an Inherited House?

When a Vehicle Goes to Probate in Texas

If there is no will or TOD provision, the vehicle often becomes part of the deceased’s estate and must go through the probate process. The probate court will determine the rightful owner based on Texas inheritance laws, which can take several months.

Once probate is complete, the appointed beneficiary can begin the title transfer by presenting:

• Court documents showing their right to the vehicle,
• The title, and
• The death certificate at the DMV.

In cases where there are multiple heirs or no immediate family members, the process can involve further complications. This is where working with an experienced Boerne probate lawyer can help clarify and expedite the transfer steps.

How to Manage Outstanding Vehicle Loans

In some cases, the deceased may have outstanding loans on their vehicle. Unfortunately, these debts don’t disappear after death and may become the responsibility of the estate or the inheritor. Here’s what beneficiaries might expect:

• Paying off the loan: The loan can be paid off using assets from the deceased’s estate. If the estate lacks sufficient funds, the vehicle may be sold to cover the outstanding balance.
• Assuming the loan: In cases where the inheritor is able and willing, they may choose to take on the loan themselves, keeping the vehicle and continuing with the remaining payments.

If neither of these options is feasible, the lender may repossess the vehicle to satisfy the debt. These situations can become complex, which is why consulting with a probate lawyer can help families manage such financial decisions.

Selling a Vehicle After Inheriting It

In some cases, beneficiaries may decide to sell the vehicle rather than keep it. This can be a practical choice, especially if the vehicle holds a high resale value, or if maintaining it is financially challenging. If a single beneficiary inherits the car, they can transfer the title to themselves, pay off any existing loan, and cancel the vehicle’s insurance before selling it.

When there are multiple beneficiaries, however, all involved parties must agree on how to proceed with the sale. One option is for a single beneficiary to buy out the others, allowing for a straightforward transaction.

Also Read: Transferring Real Estate to Children

Why Work with a Probate Lawyer in Boerne?

Navigating probate can be a time-intensive and legally intricate process, especially when it involves valuable assets like a vehicle. An experienced probate lawyer can assist families in Boerne with:

• Understanding their rights and responsibilities,
• Ensuring compliance with Texas probate laws, and
• Making informed decisions about vehicle loans, title transfers, and other estate matters.

At McCammon Law, P.C., we are committed to supporting our clients with compassion and clarity through every step of the probate process. If you’re handling a loved one’s estate and need guidance with the vehicle transfer or any other probate-related issue, don’t hesitate to reach out. Request a Consultation with McCammon Law today for experienced and compassionate probate assistance.