How to Set Up Your Vehicle Registration for Estate Planning

Avoid probate delays by properly titling your car now: Transfer-on-Death (TOD), joint ownership, and trust registration options explained.

When people think about estate planning, cars don’t always come to mind. But vehicles are assets too, and if your title and registration are not set up correctly, your loved ones may face delays, fees, or legal hurdles just to transfer ownership.

Whether you are building a trust, trying to avoid probate, or simply making things easier for your family, handling your vehicle paperwork properly now can save time and stress later.

Here’s what you need to know.

Why Your Car Title Matters in Estate Planning

Your vehicle’s title, not your annual registration renewal, determines who legally owns the car and what happens to it after you die.

If the title is only in your name and no estate planning mechanism is in place, the vehicle often becomes part of your probate estate. That can mean:

• Court involvement

• Delays before the car can be sold or transferred

• Extra paperwork and fees for your executor

The good news is that you have several simple options to avoid this.

Option 1: Transfer-on-Death (TOD) for Vehicles

Simple, fast, and probate-free

Many states allow you to add a Transfer-on-Death (TOD) beneficiary to your vehicle title. This allows ownership to pass directly to your chosen beneficiary when you die, without going through probate.

Benefits

• Avoids probate

• Easy to set up through the DMV

• You retain full ownership and control while alive

  
  

Keep in Mind

• Not available in every state

• Most states allow only one primary beneficiary

• Must be updated if your beneficiary changes

  
  

For many people, TOD is the easiest and cleanest solution.

States With Transfer-on-Death Vehicle Registration

Arizona Arkansas California Colorado Connecticut Delaware District of Columbia

Illinois Indiana Kansas Maryland Minnesota Mississippi Missouri

Montana Nebraska Nevada New Jersey Ohio Oklahoma South Carolina

South Dakota Texas Vermont Virginia Wisconsin* Wyoming

Option 2: Joint Ownership With Rights of Survivorship

Automatic transfer to the surviving owner

Adding another person to your vehicle title can allow the surviving owner to automatically inherit the car. However, how the names are listed matters more than most people realize.

Note: “AND” vs “OR” on a Vehicle Title

When two names appear on a title, they are usually connected by either AND or OR:

Title Using “AND”

Example: John Smith AND Jane Smith

• Both owners must approve and sign for sales or transfers

• Both owners legally control the vehicle

• When one owner dies, the survivor typically still needs to submit documentation to establish full ownership

This structure offers shared control but can slow transactions.

Title Using “OR”

Example: John Smith OR Jane Smith

• Either owner can sell or transfer the vehicle without the other’s signature

• Ownership transfers more easily to the surviving owner

• Often preferred for estate planning simplicity

However, this also means either person can sell the vehicle without the other’s consent.

Benefits of Joint Ownership

• Avoids probate in most cases

• Faster transfer after death

• Common for married couples

Drawbacks

• The joint owner gains immediate legal rights

• The vehicle may be exposed to the co-owner’s creditors or lawsuits

• Loss of sole control over the asset

Joint ownership works best when there is strong trust between parties and shared financial goals.

Option 3: Title Your Vehicle in the Name of a Trust

Best for comprehensive estate plans

If you already have a revocable living trust, transferring your vehicle into the trust can keep all major assets aligned under one plan.

Benefits

• Avoids probate

• Keeps vehicle management consistent with your estate plan

• Allows your successor trustee to act immediately

What to Expect

• DMV paperwork to retitle the vehicle

• Insurance policy updates to list the trust

• Possible lender restrictions on financed vehicles

Trust ownership works best when coordinated carefully with your attorney or estate planner.

What Happens If You Do Nothing?

If your vehicle remains titled only in your name with no TOD, joint owner, or trust:

• The car usually becomes part of your probate estate

• Your executor must handle court and DMV paperwork

• Transfers may take weeks or months

• Your family may face unnecessary fees and delays

This is one of the most common estate settlement headaches.

Tips for Executors and Families

Preparation saves time and frustration. If you are handling someone’s estate and dealing with a vehicle transfer:

• Check the title first for TOD or joint ownership

• Confirm whether survivorship language is present

• Ask the DMV about small estate transfer options

• Gather death certificates and ownership documents early

Estate Planning Should Include Your Vehicle

Cars may not be your largest asset, but they often create outsized problems when overlooked. A few simple updates to your title today can prevent probate delays, reduce paperwork, and make life easier for the people you care about.

Pro tip:

Store a copy of your vehicle title and registration with your estate documents or digital vault so your executor can locate them quickly.

Small steps now make a big difference later.