Detailed Answer
When an individual dies owning a motor vehicle in New Jersey, determining if the vehicle must be treated as estate property depends on how the title is held and any pre-death transfers.
1. Sole Ownership and Probate Assets
Under N.J.S.A. 39:3-4, a vehicle titled only in the decedent’s name becomes part of the probate estate. The personal representative uses letters testamentary or letters of administration to apply for a new certificate of title through the New Jersey Motor Vehicle Commission. Estate property may fund debt payments or distribution to heirs under either a will or intestate succession.
2. Joint Ownership and Nonprobate Transfers
If the decedent held the vehicle as joint tenants with rights of survivorship, the surviving co-owner automatically inherits the vehicle outside probate. Check the certificate of title for “joint tenants” or “rights of survivorship” language to confirm.
3. Trust-Owned Vehicles
Vehicles titled in a revocable or irrevocable trust before death transfer according to the trust’s terms. Properly retitled trust assets bypass probate and are not estate property.
4. Recorded Transfers Before Death
Proper gifts or sales completed before death with an executed title assignment and new registration remove the vehicle from the decedent’s estate. Verify the transfer was processed by the MVC before the date of death.
Disclaimer: This article provides general information and does not constitute legal advice. Consult a licensed attorney in New Jersey for advice specific to your situation.
Helpful Hints
- Obtain a certified copy of the decedent’s death certificate before contacting the MVC.
- Review the certificate of title for ownership structure and any transfer endorsements.
- Confirm joint tenancy with rights of survivorship if a co-owner exists on the title.
- Check for trust documents naming successor trustees for titled assets.
- Document any pre-death title transfers and ensure the MVC updated the registration.
- Consult N.J.S.A. 39:3-4 for personal representative transfer procedures.
- Consider speaking with a New Jersey probate attorney to handle estate administration and asset transfers.