Gifting Your Car to Your Child

Some car insurance companies require that your child should be at least 18 years old to gift your car to your child. You need to follow some steps to transfer your car to your child as a gift. Following are some steps you should follow to gift your car to your child:

Preparing for the gift transfer to your child

Verify ownership of the vehicle

• You must make sure that you are the legal owner of the car before gifting your car to your child. You must have the title of the vehicle which is the certificate given to you by the dealer after paying off the loan. The name of the vehicle owner is mentioned in the title.
• In case if you have lost your title certificate then you can get a new title certificate from the Department of Motor Vehicles of your state. The state charges some fee to issue a title certificate.

Pay off all the loans

• If you borrowed money from someone to purchase the car, make sure that you must clear all the loans before gifting your car to your child.
• The title certificate must be signed by the lienholders which shows that you have been paid all the loans.
• If you have not cleared the loans then the name of the lienholder will appear on the title certificate.

If an inheritance then involve probate court

• You may need to go to probate court if the owner of the car is deceased and the gift is an inheritance. You need to file a copy of the death certificate to accompany the title.
• In some states of the USA, you just need to file an affidavit with the Registry of Motor Vehicles to take possession of the car. Every state has different rules and regulations. Before gifting your car to your child you must check the rules and regulations for gift transfer to your child.

Complete paperwork

Complete the transfer section on the backside of the title

• Driver’s license information, odometer information, and signature of the person who transfers the vehicle as a gift.
• Children who receive cars as gifts need to fill out the buyer portion of the title. In the title, write a gift at the place of the sales price.
• Make sure that the title certificate should be written clearly and cleanly. There should be no errors on the title certificate.

Take the sign of the lienholder

• Take the sign of the lienholder on the title which shows that you have been cleared all the loans of the car.
• Complete all the documents regarding loans after paying off loans before gifting your car to your child.

Check for additional gift requirements

• Before gifting your car to your child, you must check the additional gift requirements with the State Registry of Motor Vehicles.
• The state may require proof of family relationship to gift your car to your child with tax.

Verify car insurance for the recipient of the gift

• Make sure that your child should be insured before gifting your car to your child.

Check inspection requirements

• In some states of the USA, it is required that the car should be separately inspected at the time of gifting your car to your child.
• Make sure that the car should be inspected at a licensed station and it must go under safety inspection.

Completing the transfer of the vehicle as a gift

Deliver the documents to RVM

• To complete the transfer of the car as a gift, you just need to deliver the documents related to the transfer vehicle to the Registry of Motor Vehicles.
• You must need to sign the documents and deliver the documents to RVM along with the fees.

Register your car according to the state’s usual procedures

• The new owner of the car may require you to register your car according to the state’s usual procedures.
• Registration of the car certifies that your car may be licensed and driven in the state.

Wait for the new title

• Your child must need to get a new title after receiving the car as a gift.
• The Registry of Motor Vehicles sends you the title of ownership of the vehicle within a few weeks.

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