In order to understand what will happen to your car after you die, it may be helpful to first get a bird’s-eye view of how the government classifies property.

Property generally falls into two categories:

Tangible property (also known as “physical” property), and
Intangible property (financial accounts, business interests, intellectual property, etc.)

Within the tangible property category, you have two subcategories

Personal property, and
Real property

To keep it simple, “real” property generally consists of land and buildings. Everything else (when it comes to physical / tangible property) is “personal” property.

So when it comes to vehicles - cars, boats, motorcycles, etc. - you now know that it falls under tangible personal property.

Once you understand that your car is considered tangible personal property (and you hopefully have a better understanding of what those three words actually mean relative to non-tangible personal property), you’ll be able to pick up on such distinctions when reading a will or a trust that uses such language. This is not only important for your own estate planning, but also if you are the beneficiary of another person’s estate or trust - otherwise there could be some confusion regarding your beneficial interests within an estate or trust (for more information on your beneficial rights, check out - What are my Rights as a Beneficiary of a Trust or Estate?)

For example, if you have a will (or have read one) - you may immediately notice that there is an article or provision that talks all about “tangible personal property”. So, if you happen to have an old will and can’t remember reading anything about a vehicle - you can check out the provision or article that talks about tangible personal property, knowing that a car will fall under that category (if not specifically carved out somewhere else in the will or trust).

With that context in mind, let’s get to your real question - what happens to my car after I die?

What happens to my car when I die?

When you die, your car’s title will be the first indicator of who now owns or is entitled to your car. For jointly titled property (e.g., if you and your spouse’s name are both on the car), it’s going to pass to your spouse without requiring probate.

Depending on the state you live in, the procedure for updating the title may vary, but generally, your spouse would go into the department of motor vehicles (DMV) - however, Massachusetts likes to mix it up by calling that place something slightly different - the registry of motor vehicles (RMV).

If you are a widow or widower, but are much older (80+), you may want to simply add your child to the title to avoid probate. Keep in mind that you may have to complete additional forms, like a sales tax exempt exclusion form, when making such a transfer.

What if my car is not jointly owned when I die?

If you do not have a jointly titled vehicle at death and your car is held in your name individually, then one of two things will generally happen. If you have a spouse that survives you, then he or she may be able to go into the DMV / RMV and fill out a spousal affidavit (at least that’s how it works in Massachusetts).

If you do not have a surviving spouse, then it gets a little trickier. Assuming the car is not held in trust, then that would mean it would have to pass through probate - which is a public court process. But, before you get upset about this, the good news is that many states have accelerated processes when the only thing that passes through probate is your vehicle.

So, for example, in Massachusetts, as long as your “probated” estate is worth less than $25,000 (excluding the value of your vehicle), then you (and by you, I mean your kids) can do something called voluntary probate administration.

Voluntary probate administration is a simple procedure that just requires a short form and death certificate (no will required unless you happen to find one). Since the process is accelerated, no judge is required, and the petitioner (generally, the adult child filing the paperwork) can get legal authority over the vehicle within a week or two (although that timeline can vary drastically depending on how busy the court is). With the signed/stamped paper in hand, the voluntary personal representative can go ahead and dispose of the vehicles as instructed via you will or by law (whichever is applicable).

Once again, if you have the will in hand, you will need to look for the language about tangible personal property (the thing that I rambled on about at the beginning of this article).

Please note: I have recently heard a horror story of someone having a lease on a vehicle at death and the lease being stuck in the probate process for over a year in Suffolk county. So, if you live in a county that is particularly busy, then be aware that failing to address your vehicle as part of your estate planning can still cause substantial headaches for your kids (which is once again why I am a fan of joint titling, if feasible).

If your probate estate is greater than $25,000, then you’ll need to deal with either informal or formal probate, which is going to cost your kids at least $3-6k (assuming no hiccups), plus months of delay, so do yourself a favor and get a revocable trust if you haven't already done so. Remember: trusts aren’t just for rich people.

Should I place my car in a trust?

In theory, that would be the smart move. Property placed in a revocable trust does not go through probate, so you would be saving your family thousands of dollars and months of delays by doing so.

But, here’s the hiccup with that:

Although revocable trusts are personal trusts (meaning they should NOT be viewed as commercial or business entities), I’ve been informed that in Massachusetts, many car insurers will not know the difference and therefore may charge you commercial insurance rates on vehicles held in trust as opposed to those held in your name individually. This may not always be the case so please check with your insurance agent and do your own due diligence, but for my purposes I make the assumption that (in Massachusetts) my clients will not place their vehicles in trust without written consent of the insurer so that it does not impact their insurance rates.

On a side note, in case you’re curious, this same dilemma does not seem to apply for any other property - I’ve just seen it happen to cars for whatever reason. I’m hoping that most car insurance companies will soon get up to speed on trusts to allow my clients to more easily take this approach, but until that happens I strongly advise the joint titling option (once again, if feasible). You will, of course, need to make sure the RMV is on the same page as well if/when transferring your vehicle to a trust.

What happens to my car when I die?

What happens to my car when I die?

What if my car is not jointly owned when I die?

Should I place my car in a trust?

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