Aug 09
Beneficiary Designation Of A Motor Vehicle
Digest
Texas now allows vehicle owners to file a Beneficiary Designation of a Motor Vehicle form, enabling cars to pass directly to a named beneficiary without probate. The form requires the vehicle identification number and beneficiary’s details and can be updated at any time during the owner’s life.
People often think that all you have to do to transfer your vehicle upon your death is make your intentions known and hand over the keys. Unfortunately, it’s not that simple. A car has a title that must legally be transferred from one person to another in order to make a valid transfer of ownership.
Until recently, the only valid way to transfer your vehicle upon your death was to go through probate, but the probate process can often be more expensive than the value of the car.
Thankfully, the Texas DMV now provides a simple form to fill out that allows a vehicle to be transferred outside of probate upon the death of the current owner. The form is called a Beneficiary Designation of a Motor Vehicle Form, and, while not otherwise changing the current ownership of the vehicle, it allows the owner to designate a beneficiary to receive the car upon the owner’s death.
This way, the current owner retains ownership of his or her car for his or her lifetime, but ownership can be automatically transferred upon the current owner’s death.
All you need to fill out the form is the Vehicle Identification Number (VIN), the full legal name of the beneficiary, and some form of government ID such as a driver’s license or passport. The application fee is generally less than $40, which is well worth the cost of avoiding probate!
If you change your mind, there’s no problem—the beneficiary can be changed at any time prior to your death by simply filing another Beneficiary Designation of Motor Vehicle Form indicating the desired change.
To learn more ways to avoid unnecessary probate costs, call us at (512)374-4922 or email hello@hardiealcozer.com to speak with one of our attorneys.