{"id":94109,"date":"2023-10-10T20:46:10","date_gmt":"2023-10-11T03:46:10","guid":{"rendered":"https:\/\/blogv2prod.wpenginepowered.com\/blog\/?p=94109"},"modified":"2024-03-14T19:33:00","modified_gmt":"2024-03-15T02:33:00","slug":"gifting-a-car-to-a-family-member-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.carparts.com\/blog\/gifting-a-car-to-a-family-member-what-you-need-to-know\/","title":{"rendered":"Gifting a Car to a Family Member: What You Need To Know"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><style>.kadence-column_656029-29 > .kt-inside-inner-col{border-top-width:0px;border-right-width:0px;border-bottom-width:0px;border-left-width:0px;}.kadence-column_656029-29 > .kt-inside-inner-col,.kadence-column_656029-29 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column_656029-29 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column_656029-29 > .kt-inside-inner-col{flex-direction:column;}.kadence-column_656029-29 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column_656029-29 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column_656029-29{position:relative;}@media all and (max-width: 1024px){.kadence-column_656029-29 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column_656029-29 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column inner-column-1 kadence-column_656029-29 qk-look-widget\"><div class=\"kt-inside-inner-col\">\n<div class=\"wp-block-ultimate-post-row ultp-block-eb6dbd  qk-main-wrap\"><div class=\"ultp-row-wrapper\"><div class=\"ultp-row-content\">\n<div class=\"wp-block-ultimate-post-column ultp-block-2eda7b\"><div class=\"ultp-column-wrapper\"><style>.wp-block-kadence-advancedheading.kt-adv-heading_79a6c4-80, .wp-block-kadence-advancedheading.kt-adv-heading_79a6c4-80[data-kb-block=\"kb-adv-heading_79a6c4-80\"]{text-align:center;font-size:20px;font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_79a6c4-80 mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading_79a6c4-80[data-kb-block=\"kb-adv-heading_79a6c4-80\"] mark.kt-highlight{font-family:Inter;font-weight:500;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.wp-block-kadence-advancedheading.kt-adv-heading_79a6c4-80 img.kb-inline-image, .wp-block-kadence-advancedheading.kt-adv-heading_79a6c4-80[data-kb-block=\"kb-adv-heading_79a6c4-80\"] img.kb-inline-image{width:150px;vertical-align:baseline;}<\/style>\n<div class=\"kt-adv-heading_79a6c4-80 summary-title wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_79a6c4-80\"><span>Summary<\/span><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li>Each state has different processes when gifting a car to a family member. As such, it&rsquo;s crucial to verify your state&rsquo;s DMV regulations.<\/li><li>The vehicle&rsquo;s paperwork needs to be in order before you hand it over to your family member. Prepare your vehicle title, satisfy any liens, and fill out the transfer section at the back of the title.<\/li><li>Transferring ownership to a family member may also involve different taxes, such as sales, gift, and inheritance taxes.<\/li><\/ul>\n<\/div><\/div>\n<\/div><\/div><\/div>\n<\/div><\/div>\n\n\n\n\n\n<p>A car is a rather grand gift to give to a family member, and one they&rsquo;ll surely appreciate. Still, when giving a car away, it can be a lot more complicated than simply dropping the keys in their hands. Here&rsquo;s what to do when a car is gifted to you by a family member or when you&rsquo;re gifting a car to a family member.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Research the Car Gifting Process<\/h2>\n\n\n\n<p>Each state has its own process when you gift a car to a family member. It&rsquo;s best to verify what your state&rsquo;s department of motor vehicles (DMV) needs. Some offer tax exemptions, require witnesses or notarization, and so on.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Paper Trail<\/h2>\n\n\n\n<p>You might be wondering, &ldquo;What documents do I need to gift a car?&rdquo; The vehicle&rsquo;s paperwork needs to be in order before you hand over the vehicle to your family member. This is to ensure that they fully, legally own the vehicle both in practice and on paper. It&rsquo;s good to leave a paper trail behind to trace the ownership back to them and only them. For this, you&rsquo;ll need to do the following:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Vehicle Title<\/h3>\n\n\n\n<p>The vehicle title is one of the most important documents to have in order whether you&rsquo;re the gifter or the giftee. Verify your ownership before handing over or receiving the keys. As long as all loans are paid, you should receive the title as a certificate from the dealer. If you&rsquo;ve lost your certificate, you can <a href=\"https:\/\/www.carparts.com\/blog\/when-is-the-best-day-to-go-to-the-dmv-time-saving-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"go to your state&rsquo;s DMV\">go to your state&rsquo;s DMV<\/a> to request a replacement.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Liens<\/h4>\n\n\n\n<p>Should the title have any liens on it, you&rsquo;ll need to satisfy all of them before you can transfer ownership. Lienholders are people you borrowed money from while using the vehicle as collateral. Their names appear on the title, and you&rsquo;ll have to have all of your loans paid and the lienholders sign off on the certificate.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Transfer Section<\/h4>\n\n\n\n<p>There&rsquo;s a transfer section at the back of every vehicle title. The gifter of the car will have to provide their signature, license information, and odometer information at the time of the gift. The person receiving the car will need to fill out the buyer portion. Under the sale price section, place &ldquo;Gift&rdquo; instead.<\/p>\n\n\n\n<p>Submit all pertinent documents with the required fees to the DMV. These documents include a copy of the completed title, proof of insurance, the vehicle&rsquo;s registration card, and proof of identity. Register the car following your state&rsquo;s regular procedures, and your new title should arrive within a couple of weeks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Bill of Sale<\/h3>\n\n\n\n<p>When gifting a car, it might also help to draft a bill of sale showing the transfer of ownership. This serves as a reference for both parties in the future when they need to verify their agreement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Inheritance<\/h3>\n\n\n\n<p>If you&rsquo;re inheriting a vehicle from a deceased relative, you&rsquo;ll need to go to Probate Court. They&rsquo;ll issue you an order for the transfer. In some states, you might be able to file an affidavit with the Registry of Motor Vehicles for the title transfer. As always, check the laws in your state.<\/p>\n\n\n\n<div id=\"article-search-widget\">\n<div class=\"cp-search\">\n<div align=\"center\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cld.partsimg.com\/image\/upload\/w_auto,dpr_auto\/carparts\/logos\/badge_wordmark\/full_color\/CP_LOGO_COLOUR_RGB\" alt=\"CarParts.com\" width=\"300\" height=\"56\">\n<\/div>\n<form id=\"cpsearchform\" name=\"cpsearchform\" action=\"https:\/\/www.carparts.com\/search\" method=\"get\" target=\"_blank\" accept-charset=\"character_set\" aria-label=\"search CarParts.com\">\n    <input type=\"text\" class=\"keyword\" name=\"q\" placeholder=\"Search for parts on CarParts.com\" value=\"\" aria-label=\"Search CarParts.com\"><input type=\"submit\" class=\"btn-search\" value=\"Search\" aria-label=\"Search\">\n<\/form>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Taxes<\/h2>\n\n\n\n<p>There are a couple taxes you might need to look out for when gifting or being gifted a car.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sales Tax<\/h3>\n\n\n\n<p>When gifting a car to a non-immediate family member, it&rsquo;s not uncommon for the state to require that either the gifter or the giftee pay a hefty sales tax. Immediate family members include children, grandparents, parents, grandparents, grandchildren, siblings, in-laws, aunts, and uncles. Step-siblings and half-siblings are also immediate family members. For immediate family members with different last names, the state will often require you prove your relationship to them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Gift Tax<\/h3>\n\n\n\n<p>The gift tax is a rarer tax that&rsquo;s assessed on &ldquo;the transfer of property by one individual to another while receiving nothing, or less than full value, in return&rdquo; according to the Internal Revenue Service (IRS). The gift tax rules only apply if the vehicle&rsquo;s fair market value exceeds $17,000. Gifts that are worth more than the $17,000 annual exclusion will count against your lifetime exclusion of $12.92 million.<\/p>\n\n\n\n<p>For instance, a gifted vehicle worth $35,000 will count $18,000 ($35,000 &ndash; $17,000) against your $12.92 million lifetime exclusion. You&rsquo;ll only need to pay a gift tax if you consume your $12.92 million lifetime exclusion within your lifetime.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Inheritance Tax<\/h3>\n\n\n\n<p>Certain states might assess taxes on a vehicle that&rsquo;s been willed to you. You&rsquo;ll need to confirm these details with your local tax office and review any payment options if this is the case.<br>Knowing the details for how to gift a car to a family member is important if you don&rsquo;t want it to be a headache for them down the line. The same goes for if you&rsquo;re receiving a car as a gift from a family member. Now that you&rsquo;re more familiar with the process and documents needed, you can proceed with your grand gesture.<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>A car is a rather grand gift to give to a family member, and one they&rsquo;ll surely appreciate. Still, when&#8230; <a href=\"https:\/\/www.carparts.com\/blog\/gifting-a-car-to-a-family-member-what-you-need-to-know\/\" rel=\"nofollow\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":94291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3950,3768],"tags":[],"ppma_author":[2607,3269],"class_list":{"0":"post-94109","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-for-the-car-owner","8":"category-lifestyle","9":"entry"},"acf":{"adrotate_specific_mobile_ad":"","adrotate_specific_desktop_ad":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Gifting a Car to a Family Member: What You Need To Know - In The Garage with CarParts.com<\/title>\n<meta name=\"description\" content=\"When gifting a car to a family member, there are steps to take before the giftee is ready to fully enjoy the ride. Learn all about them!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.carparts.com\/blog\/gifting-a-car-to-a-family-member-what-you-need-to-know\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gifting a Car to a Family Member: What You Need To Know - In The Garage with CarParts.com\" \/>\n<meta property=\"og:description\" content=\"When gifting a car to a family member, there are steps to take before the giftee is ready to fully enjoy the ride. Learn all about them!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.carparts.com\/blog\/gifting-a-car-to-a-family-member-what-you-need-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"In The Garage with CarParts.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/carpartscom\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-11T03:46:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-15T02:33:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2023\/10\/car-gift.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"1001\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@carpartscom\" \/>\n<meta name=\"twitter:site\" content=\"@carpartscom\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.carparts.com\\\/blog\\\/gifting-a-car-to-a-family-member-what-you-need-to-know\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.carparts.com\\\/blog\\\/gifting-a-car-to-a-family-member-what-you-need-to-know\\\/\"},\"author\":[{\"@type\":\"Person\",\"$id\":\"4\",\"name\":\"CarParts.com Research Team\",\"jobTitle\":\"Expert Automotive Writer\",\"description\":\"The CarParts.com Research Team is composed of experienced automotive and tech writers working with (ASE)-certified automobile technicians and automotive journalists to bring up-to-date, helpful information to car owners in the US. 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