Detailed Answer
In New Mexico, a motor vehicle becomes part of a decedent’s probate estate unless the owner validly transferred it out of their name before death or used a statutory method to bypass probate. To decide if a transferred vehicle must be treated as estate property, review how and when ownership changed.
1. Completed Pre-Death Transfers
If the decedent sold or gifted the vehicle before death, the transfer must be fully executed to remove it from the probate estate. Proper execution means:
- The decedent endorsed and delivered the certificate of title.
- The new owner recorded the title with the Motor Vehicle Division.
NMSA 1978, Section 66-3-6.
If any step remains incomplete at death, the vehicle stays in the estate.
2. Transfer-on-Death (TOD) Beneficiary Designation
New Mexico allows a TOD beneficiary on vehicle titles. To use this method:
- The decedent completes the TOD section on the title certificate before death.
- The beneficiary submits the original title and death certificate to the MVD within 90 days of death.
Upon compliance, the beneficiary acquires title outside of probate. If the TOD designation is invalid or unrecorded, the vehicle reverts to the estate. NMSA 1978, Section 45-10-301.
3. Joint Ownership with Right of Survivorship
If the title names multiple owners as joint tenants with rights of survivorship, the surviving owner automatically gains full ownership at death. No probate filing is needed, and the vehicle does not enter the estate.
4. Failure to Properly Transfer Title
An attempted gift or sale that lacks title transfer documentation at death has no effect under probate law. Title transfer only occurs when the Motor Vehicle Division records the new owner. Until then, the vehicle remains estate property. NMSA 1978, Section 46-1-201.
5. Small Estate Affidavit
For estates where total personal property (including vehicles) is under $100,000, beneficiaries may use a small estate affidavit to transfer title without full probate. The affidavit must include a description of the vehicle, the decedent’s death certificate, and an oath by the beneficiary. NMSA 1978, Section 46-6-101.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.
Helpful Hints
- Check the MVD title history online before opening probate.
- Gather the original title and death certificate early.
- Confirm no outstanding liens exist before transfer.
- Use TOD or joint tenancy to avoid probate when planning ahead.
- Consider a small estate affidavit if the vehicle’s value is low.
- Speak with a probate attorney if title questions arise.