Detailed Answer
Under Oregon law, determining whether a transferred vehicle must be treated as estate property after a decedent’s death requires analyzing title status, timing of transfer, and applicable statutory rules. Below are key steps and statutory references to guide you.
1. Ownership at Death
First, identify how the vehicle was titled at the moment of death:
- Sole Ownership: If the decedent held title alone, the vehicle automatically becomes estate property. Per ORS 114.005, all solely owned personal property at death passes through probate. (ORS 114.005)
- Joint Tenancy with Right of Survivorship: A vehicle titled jointly with right of survivorship passes directly to the surviving co-owner outside probate. Oregon recognizes joint tenancy for personal property under ORS 93.010–93.170. (ORS 93.010)
- Tenancy in Common: If titled as tenants in common, each owner has an individual share. The decedent’s share enters the estate and requires probate distribution.
2. Transfers Before or After Death
Oregon law treats certain transfers as void or voidable if they occur outside proper authority or intent:
- Power of Attorney: A power of attorney ends upon the principal’s death. Any transfer by an agent after death is ineffective. The vehicle reverts to the estate. (ORS 127.005)
- Fraudulent Conveyance: Transfers made within two years before death to hinder heirs or creditors may be reversed. Creditors and heirs can petition under ORS 112.190–112.195 to recover property. (ORS 112.190)
3. DMV Title Procedures
Even if heirs agree on a transfer outside probate, the Oregon DMV requires clear chain of title:
- Submit death certificate and probate documents (or small estate affidavit if eligible under ORS 114.505: estates under $80,000 in personal property). (ORS 114.505)
- Complete an Application for Certificate of Title (Form 735-226) per ORS 803.150. (ORS 803.150)
- Pay any applicable fees and surrender the original title certificate.
4. Small Estate Affidavit
If the vehicle and other personal property do not exceed $80,000 and there is no real property requiring supervision, heirs can use a small estate affidavit instead of full probate. After filing, the DMV will transfer title to heirs named in the affidavit.
Disclaimer: This article is educational and does not constitute legal advice. For advice about your specific situation, please consult a licensed attorney in Oregon.
Helpful Hints
- Check the recorded title and verify the exact wording of joint tenancy or tenancy in common.
- Review any power of attorney documents to confirm agents lost authority at death.
- Look for transfers made within two years of death to spot potential fraudulent conveyances.
- Gather death certificate, will, and probate court documents before visiting the DMV.
- Consider small estate procedures under ORS 114.505 to avoid lengthy probate.
- Keep detailed records of all communications with the DMV and any probate filings.