When it comes to estate planning, most people think about their homes, bank accounts, or retirement funds. But what about your car? The way your vehicle is titled can have a significant impact on what happens to it after you pass away. Understanding vehicle ownership and how it ties into your estate plan is an essential but often overlooked step in protecting your assets and easing the burden on your loved ones.
In this blog post, Charlotte-based estate planning attorney Sabrina Winters breaks down the nuances of vehicle ownership and how to ensure your intentions are honored.
Why Vehicle Ownership Matters in Estate Planning
Your car is an asset—and just like your other possessions, it must be transferred properly after your death. How your vehicle is titled determines whether your surviving loved ones will face a smooth or complicated process.
Understanding Vehicle Titles: The Basics
A vehicle title lists the legal owner(s) of the car. When more than one name appears on the title, how ownership is shared depends on the specific language used.
Two Common Scenarios:
1. Joint Ownership Without Survivorship Rights
If two people are listed on a vehicle title without language such as “Joint with Rights of Survivorship” (or an abbreviation like “JTWROS”):
- Each person owns 50% of the vehicle.
- When one owner passes away, their 50% does not automatically transfer to the other owner.
- Instead, that half becomes part of the deceased owner’s estate and must go through probate unless directed otherwise by a will or trust.
2. Joint Ownership With Rights of Survivorship (JTWROS)
If the vehicle is titled with survivorship rights:
- When one owner passes away, the surviving owner automatically becomes the sole owner.
- No probate is required.
- A will or trust cannot override this transfer—ownership passes instantly by law.
The Problem? Most People Don’t Know This
“When you are buying vehicles, oftentimes the car dealers do not let you know that this isn’t even an option.”
Many people unknowingly title their vehicles without considering the legal implications. This can result in unexpected legal hurdles or delays when a loved one dies.
What Should You Do?
Here’s how to make sure your vehicle aligns with your estate planning goals:
- Review Your Titles – Check how your vehicles are currently owned. Are survivorship rights clearly indicated?
- Talk to Your CPA or Financial Advisor – Not all assets should be jointly owned, depending on your tax and financial planning strategy.
- Discuss With Your Estate Planning Attorney – Your attorney can help you decide if JTWROS is the right choice or if your vehicle should be addressed in your will or trust.
Take Control of the Small Details
It might seem like a small issue, but titling your vehicle correctly can:
- Help your family avoid probate.
- Ensure your wishes are honored.
- Simplify estate administration.
Plan Today for Peace Tomorrow
Estate planning is about more than the big picture—it’s also about the small but important details that make life easier for the people you love.
At Sabrina Winters Law, we help clients in Charlotte, NC, and surrounding areas understand every aspect of their estate plan, from real estate to retirement accounts to the car in your driveway.
Ready to Get Started?
You can self-schedule your strategy session today at sabrinawinterslaw.com. Let’s make sure every asset—including your vehicle—is handled according to your wishes.
Tomorrow isn’t promised. Let’s plan today.