What to Do With a Deceased Person's Car

Few people plan for what happens to a car after its owner dies. Whether you're inheriting it, selling it, or transferring it to another family member, here's what to do.

First: Secure the Vehicle

Before anything else, make sure the car is physically secure. If it's parked somewhere public or at a location that will become inaccessible (like a hospital parking garage), move it to a safe private location. Notify the auto insurance company of the death. Coverage may continue for a limited time, but confirm this and update the policy.

Also check for any ongoing payments: auto loans, lease agreements, or car insurance premiums. These obligations don't stop automatically at death.

Understand Who Legally Owns the Car

The title determines everything. Look at the vehicle's title (or get a copy from your state's DMV) and check whose name is on it:

• Title in the deceased's name only: The car is a probate asset. It must pass through the estate before it can be transferred.
• Joint title with "or" (e.g., "John Smith or Mary Smith"): The surviving owner can usually transfer the title with just a death certificate. No probate is needed.
• Joint title with "and": Both signatures are required for transfer, which may require probate since one owner is deceased.
• Transfer-on-Death (TOD) title: Some states allow TOD designations on vehicle titles. The named beneficiary can claim the car directly with a death certificate.

Option 1: Transfer the Car to a Family Member

If someone in the family wants to keep the car, you'll need to transfer the title. The process varies by state, but generally requires:

• A certified copy of the death certificate
• The original vehicle title
• Letters Testamentary (if the estate went through probate) or an Affidavit of Heirship (for small estates)
• A completed title transfer application from your state's DMV

Many states have a simplified "small estate" process for vehicles below a certain value, often $25,000 to $50,000. This lets you transfer the title without formal probate using a simple affidavit. Check your state's DMV website for details.

Option 2: Sell the Car

Selling a deceased person's car follows the same title transfer process, except the title goes to the buyer. You'll need the same documents listed above. The executor of the estate has legal authority to sell estate assets, including vehicles.

If the car had a loan on it, contact the lender immediately. The lender holds a lien on the title and must be paid off (from estate funds) before the title can be transferred to a buyer.

Option 3: Donate the Car

Many charities accept donated vehicles and will handle the towing. The estate may be able to claim a tax deduction for the donation. You'll still need to transfer the title to the charity, and they can walk you through their process.