When planning for the future, many people overlook an important question: “What happens to my cars when I die?” At Lumsden Law Firm, we understand that estate planning extends beyond just your home and financial assets—it includes your vehicles too. Whether you own a car, motorcycle, mobile home, RV, or boat, it’s crucial to know what will happen to these assets after your passing.

Leased vs. Purchased Vehicles

The fate of your vehicle largely depends on whether it is leased or purchased. If your vehicle is leased, it can be returned to the leasing dealership upon your death. The dealership will then determine the car’s value and either provide a refund to your estate if they make a profit or seek the deficit from your estate if they incur a loss. It’s important to note that any financial dealings with the dealership may necessitate probate if other assets are involved.

Titles Matter: “And” vs. “Or”

How your vehicle is titled significantly impacts the transfer process. If the title includes two names separated by “or,” the surviving owner can easily transfer the vehicle to their name. However, if the title uses “and,” the process becomes more complicated and may require legal intervention. To avoid such complications, ensure that your vehicle title is correctly worded.

Vehicles and Trusts

For valuable assets like cars, boats, or RVs, placing them into a revocable living trust can streamline the transfer process. This approach can help bypass probate and ensure a smoother transition of ownership. However, it’s important to consult with your insurance agent, as some may view trust-owned vehicles as higher risk.

Vehicles Titled in Your Sole Name

If your vehicle is solely in your name and you have a will, the vehicle can be included in the probate process along with your other assets. This ensures a clear and legal transfer to the new owner. If there is no probate or will, the vehicle can still be transferred to a surviving spouse or children through DMV procedures.

Addressing Debts and Vehicle Loans

If you have outstanding debts or loans on your vehicle at the time of your death, transferring the vehicle can become more complicated. In such cases, probate may be necessary to settle these debts before the vehicle can be passed on to your heirs.

Conclusion

As you can see, the fate of your vehicle after your death depends on numerous factors. At Lumsden Law Firm, we specialize in estate planning and probate, ensuring that all your assets, including vehicles, are managed according to your wishes.

Contact us today to discuss your estate planning needs and secure peace of mind for you and your loved ones.