A frequent problem in estate planning involves the ownership of vehicles. For example, if a vehicle is titled in a spouse’s name, but you have made all the payments, what happens to the vehicle if your spouse passes away before the title is transferred?
Understanding Title and Estate Inclusion
The key factor in determining whether an asset like a vehicle is included in someone’s estate is whose name is on the title. If the vehicle’s title is in your spouse’s name and they pass away, the vehicle is generally considered part of their estate. This can occur for any number of reasons but is more painful the more one feels the ownership was theirs in all but name.
To avoid such complications, it’s advisable to establish joint ownership of any vehicle or titled property. Signing a title with “name or name” creates joint tenancy, a legal statue under which either party can claim ownership. This simplifies the process in the event of one partner’s death. Unfortunately, if this step wasn’t taken and the spouse has already passed away, the vehicle remains in their name only.
If the deceased’ estate consists only of the vehicle, a straightforward solution may be available. A DMV form known as an affidavit of entitlement can potentially transfer the title to a spouse without much hassle. This form is sadly, generally useful only for small estates where the vehicle is the primary asset.
Complex Estates Require More Analysis
In cases where the deceased’s estate includes properties, bank accounts, investment accounts, or other significant assets, the process becomes more complicated and requires a detailed examination. How the vehicle is handled in this scenario depends on the overall estate planning strategy and the existence of other legal instruments like wills or trusts.
In a situation where there’s no will, state intestacy law generally dictates that assets go to the surviving spouse. Therefore, it doesn’t matter if one spouse made all, most, or none of the vehicle payments. If there’s no will, the law usually favors the surviving spouse, making the payment history less relevant. Even in the case of a will or trust, if a vehicle is an asset given to a beneficiary, a spouse can assert spousal rights to have that component of the estate given to them.
If you find yourself in a situation where you’re unsure about the ownership of a vehicle after the passing of a spouse, especially in the context of estate planning, it’s important to seek legal advice. An attorney at Clear Counsel Law Group can provide a consultation to discuss your specific situation and guide you through the process. Taking steps such as establishing joint ownership can simplify matters significantly. In cases where such planning hasn’t been done its good to ensure that your interests are protected and that you understand your rights in relation to the vehicle and the broader estate.