Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When someone dies owning a vehicle, you must decide if the car must go through probate and become estate property. Under Tennessee law, a vehicle transfer depends on how the decedent held title and any designated beneficiaries.
1. Sole Ownership at Death
If the vehicle’s title listed only the decedent, with no beneficiary or co-owner, it passes into the probate estate. The personal representative must include it in the estate inventory under Tenn. Code Ann. § 30-2-101 et seq. It can then be sold or distributed according to the will or Tennessee intestacy statutes.
2. Transfer-on-Death (TOD) Designation
Tennessee allows a TOD beneficiary for motor vehicles. If the decedent completed a TOD designation on the title application, the vehicle passes directly to the named beneficiary outside probate under Tenn. Code Ann. § 55-3-112. The beneficiary must apply for a new title with a copy of the decedent’s death certificate and the TOD form.
See Tenn. Code Ann. § 55-3-112: https://law.justia.com/codes/tennessee/2010/title-55/chapter-3/section-55-3-112/
3. Joint Ownership with Right of Survivorship
When a decedent co-owned the vehicle as joint tenants with right of survivorship, the surviving owner automatically owns the vehicle. It does not become estate property. The survivor files an affidavit of death with the Department of Revenue and updates the title.
4. Inter Vivos Gift
If the decedent transferred the vehicle before death—by gifting and completing title assignment—the vehicle is not estate property. Tennessee law requires delivery of title and relinquishment of control before death to support a valid gift.
5. Small Estate Affidavit
If the estate’s personal property is under $50,000, Tennessee permits a small estate affidavit under Tenn. Code Ann. § 30-2-105. An heir or beneficiary can claim vehicles by affidavit instead of full probate.
See Tenn. Code Ann. § 30-2-105: https://law.justia.com/codes/tennessee/2010/title-30/chapter-2/section-30-2-105/
Helpful Hints
- Check the title for TOD or joint owner information before opening probate.
- Obtain a certified copy of the death certificate for title transfers.
- Visit the Tennessee Department of Revenue’s Motor Vehicle Division for the correct forms.
- Keep records of any inter vivos gift documentation.
- Consider small estate procedures if the personal estate falls below the statutory threshold.