How to Transfer a Decedent's Car in North Carolina
When someone you care about passes away, you might be wondering what to do about their vehicle. The good news is that there are several ways to handle the transfer. The right choice usually depends on how the car was owned and its value. Let’s walk through your options:
1. Year’s Allowance (For Surviving Spouses)
If you’re a surviving spouse, you can claim up to $60,000 in personal property—including the car—through what’s called the “year’s allowance.” You’ll need approval from the clerk of court.
Why it’s beneficial: It’s quick, affordable, and guaranteed by law.
Keep in mind: This option is only for surviving spouses and has that $60,000 limit. There is no time limitation for filing the claim unless a formal estate has already been open, in which case you must file the claim within 6 months of the estate being opened.
2. DMV Form MVR-317 (For Spouses or Children)
This handy DMV form allows the heirs to transfer the vehicle directly with minimal court involvement.
Why it’s beneficial: It’s straightforward and just as quick as using a year’s allowance.
Keep in mind: Per the NC DMV’s Title Manual, the form is acceptable without the signatures of the children only if the deceased died intestate (no will) and the net property does not exceed $15,000 in value.
3. Collection by Affidavit (Small Estates)
If the entire estate is worth less than $20,000 (or $30,000 with a surviving spouse), you can use this simplified process after waiting 30 days.
Why it’s beneficial: It’s one more shortcut that avoids lengthy probate.
Keep in mind: Only available for smaller estates that fall under these value limits.
4. Full Probate
For more valuable cars, you’ll go through the traditional probate process with court supervision.
Why it’s beneficial: It works in every situation and provides clear legal authority.
Keep in mind: It takes more time and costs significantly more than other options. You’ll need this if the vehicle (or estate) is over $20,000 (or $30,000 with a surviving spouse as sole heir).
5. Joint Ownership with Survivorship Rights
If the car title already shows joint ownership with survivorship rights, the surviving owner automatically gets full ownership.
Why it’s beneficial: The transfer happens immediately with no court process needed. You’ll just need a copy of the death certificate to present to the DMV office.
Keep in mind: This only works if the title was set up this way beforehand.
6. Revocable Living Trust
If the car was titled in a living trust, the successor trustee can transfer it directly according to the trust’s terms.
Why it’s beneficial: It completely avoids probate, and the trustee can act right away.
Keep in mind: This requires planning ahead to put the vehicle in the trust while the person is still alive.
Final Thought
North Carolina gives families several good options for transferring a loved one’s car. The best choice depends on your specific situation—how the car was titled and what it’s worth. While vehicles over $20,000/$30,000 usually need full probate, with some advance planning, families can often use simpler, faster options.