When someone dies, their family often knows what to do with major assets like a home or bank account. A car can be surprisingly confusing. Who owns it now? Can a family member drive it? What happens if there is still a loan? And how do you transfer the title? The answer depends on how the vehicle was owned and the laws of California.
Who Owns the Car After Someone Dies?
Start by looking at the vehicle title. If the car was owned jointly with another person, ownership may pass automatically depending on how the title is written and California law. If the deceased person was the sole owner, the vehicle may become part of the probate estate unless another transfer method applies.
What Happens If There Is Still a Car Loan?
The loan does not disappear when the borrower dies. If the estate wants to keep the vehicle, someone will generally need to continue making payments while the estate is being administered. Depending on the loan terms and circumstances, the lender may require the balance to be paid or may allow another person to assume or refinance the loan. Do not assume that simply taking possession of the car transfers responsibility for the debt.
Can a Family Member Keep Driving the Car?
This is where families should be careful. Insurance coverage may change after the owner’s death. Before anyone regularly drives the vehicle, contact the insurance company and ask what documentation or policy changes are required. Driving an improperly insured vehicle can create serious problems if there is an accident.
How Is the Title Transferred?
The documents needed to transfer title depend on the estate and California motor vehicle rules. You may need a death certificate, estate documents, court appointment papers, title paperwork, or other forms. Before selling, gifting, or transferring the car, make sure the person signing has legal authority to do so.
Law Offices of Lisa Golshani helps families in Calabasas understand the estate administration process and what steps may be required when someone dies. If you have questions about handling a vehicle or other estate assets, give us a call at (818) 334-2805.