The death of a loved one is a difficult time. The legal challenges involved in handling an estate, including a deceased person's vehicle, can add to the stress.
In Texas, selling a car inherited from someone who has passed away can be done without probate under certain circumstances. At Texas Horizons Law Group, our estate and probate attorneys can guide you through transferring a title and selling a car after a loved one passes.
Understanding Probate
Probate is a legal process overseen by a court that determines how a deceased person's assets are distributed to their beneficiaries. In Texas, probate is generally required for estates with a value exceeding $75,000, not excluding exempt property like a family home. This can be a time-consuming and expensive process.
How to Transfer Ownership of a Car: What Documents Do You Need?
The Texas Department of Motor Vehicles (TxDMV) outlines the documents needed to transfer ownership of a car inherited from someone who has passed away.
If the estate does not go through probate, you will need the following documents to transfer and register the vehicle:
- Affidavit of Heirship for a Motor Vehicle (Form VTR-262) with notarized signatures
- Application for Texas Title and/or Registration (Form 130-U)
- The original vehicle title
- Your driver’s license or another valid photo ID
- Proof that the loan is paid off, if applicable
- Proof of insurance
- A current inspection report
- A copy of the will showing that you are entitled to inherit the vehicle
- A court document indicating that probate is not required for the estate
- The original death certificate or a certified copy
After you gather these documents, you will submit them to your county tax office. Once the vehicle is transferred into your name, you can legally sell it without hassle.
How to Transfer a Car Title in Texas When the Owner Is Deceased Without Probate
Texas law offers a few alternatives to probate for transferring ownership of a deceased person's estate.
1. Beneficiary Designation on the Title
In Texas, you can request a title that designates who will inherit the vehicle upon your death. You must complete Form VTR-121, “Beneficiary Designation for a Motor Vehicle,” which you can obtain through the TxDMV. This process allows the transfer to avoid probate.
What You Need When a Car Title Has a Designated Beneficiary
- The title that lists the deceased owner’s name and your beneficiary information
- A copy of the death certificate
- Application for Texas Title and/or Registration (Form 130-U)
- A small fee
2. Affidavit of Heirship
If there was no beneficiary designation or the 180-day window has passed, an affidavit of heirship can be used. This is a sworn statement outlining the deceased's heirs and their inheritances. It requires the following:
- No Will: If the deceased died without a will, all legal heirs must sign the affidavit.
- Will with No Independent Executor: If the deceased had a will but no independent executor named to handle the car, the heirs can use the affidavit of heirship, provided the car's value does not necessitate probate for other estate assets.
Requirements for Using an Affidavit of Heirship
You can use an affidavit of heirship for selling a deceased person's car in Texas if several conditions are met:
- Value of the Vehicle: The car's value must be less than a specific threshold set by the county where the deceased resided; since this threshold varies by county, it is crucial to check with your local TxDMV office.
- No Competing Claims: There must be no disagreements or legal challenges regarding who inherits the car.
- Debts and Taxes: All outstanding debts and taxes on the car, including any unpaid loans, must be paid before the sale.
Steps for Selling a Deceased Person's Car with an Affidavit of Heirship
- Obtain the Affidavit Form: Form VTR-262, "Affidavit of Heirship for a Motor Vehicle," is available from your local TxDMV office.
- Complete the Affidavit: All heirs listed in the affidavit must sign it and have their signatures notarized.
- Gather These Supporting Documents:
- Original or certified death certificate
- Proof of ownership (the original car title)
- Vehicle registration documents
- Bill of sale (optional, recommended)
Benefits of Using an Affidavit of Heirship
- Cost-Effective: Generally less expensive than probate.
- Time-Saving: Avoids the delays associated with probate court proceedings.
- Simpler Process: Can be a more streamlined approach, especially for vehicles with lower values.
3. Muniment of Title
A muniment of title allows certain estates to bypass probate. The estate must have a will and other conditions must be met, such as continuous family ownership for a specific period.
If the beneficiaries can establish a clear chain of ownership through documents like bills of sale or prior titles, a muniment of title can be used to transfer the title without probate or an affidavit. However, this process can be complex and may require legal guidance.
4. Small Estate Affidavit
Texas allows estates with a value below $75,000 to bypass probate with an option called a “small estate affidavit.” This affidavit allows heirs to collect certain assets, including vehicles, without probate. However, this option may not be available in all counties.
5. Attorney's Affidavit
Similar to a small estate affidavit, this option might be available if the estate is small and there is no probate. An attorney prepares the affidavit outlining details like the deceased's information, vehicle details, and your relationship with the deceased.
6. Joint Ownership with Right of Survivorship
If the car title has both the deceased and another person listed as owners, the survivor can rely on a legal principle called the “right of survivorship” to become the sole owner. They can submit a form and a copy of the death certificate to obtain the title in their name and then sell the car.
7. Title with Transfer on Death Deed
A Transfer on Death Deed (TODD) allows a named beneficiary to inherit the vehicle upon the owner's passing, bypassing probate. The owner may choose any beneficiary, even if that person does not share ownership of the vehicle. To sell the car, you will typically need to transfer the car to your name and show the title company the death certificate.
When to Consider Probate Â
While the above options may be faster and more convenient, probate might still be necessary in some situations:
- Disagreements Among Heirs: If there are disputes regarding who inherits the car, probate can provide a legal framework for resolving them.
- High-Value Vehicles: If the car's value exceeds the county's threshold for using an affidavit, probate may be required.
- Complex Estates: If the deceased's estate involves other assets or significant debts, probate might be the best course of action for overall estate administration.
If you are planning your estate or dealing with the estate of a loved one who has passed away, an attorney at Texas Horizons Law Group can provide advice and support.
What Else to Do Before Selling the Car of a Deceased Person
Once you have established clear car ownership, you should verify that there are no outstanding liens. The car title will typically indicate if a lien exists. If so, you must pay any loans off before the title can be transferred to the new owner.
Then, notify the auto insurance company and cancel any existing policies. This will allow you to avoid unnecessary charges.
