Can a co-owner of a vehicle keep or refinance the car after the other co-owner dies, and what rights does a minor child have in the vehicle? – North Carolina

Short Answer

In North Carolina, a co-owner may be able to keep the vehicle and refinance it after the other co-owner dies, but the outcome depends on how the vehicle was titled. If the title was set up as a joint tenancy with right of survivorship, the surviving co-owner generally becomes the owner outside of probate. If there is no survivorship designation, the deceased co-owner’s share usually becomes part of the estate, and a minor child’s inheritance rights are handled through the estate (and often require a court-approved process before the child’s share can be transferred or used).

Understanding the Problem

In a North Carolina probate situation where a co-parent dies without a will and leaves a minor child, the key question is whether the surviving co-owner can keep the car (and refinance it) without opening a full estate, and whether the minor child has an ownership interest in the vehicle. The decision point is how the vehicle is titled and whether the deceased co-owner’s interest passes automatically to the survivor or instead passes through intestate succession to heirs, including a minor child. The same death often triggers a need for court documentation from the Clerk of Superior Court to handle insurance, banking, and other assets titled only in the decedent’s name.

Apply the Law

North Carolina allows co-owners to title a vehicle with a right of survivorship. If the title is set up that way, the surviving co-owner can typically transfer the title into the survivor’s name by providing the required DMV documentation, and the vehicle generally does not pass through probate as an estate asset. If the title is not survivorship (or the paperwork does not support survivorship), then the deceased co-owner’s share is usually treated like other personal property: it becomes part of the decedent’s estate and passes to heirs under North Carolina intestate succession rules, which can include a minor child. A minor generally cannot sign to transfer title or consent to a refinance, so a parent or court-appointed fiduciary often must act for the child, and lenders commonly require estate or court paperwork before approving a refinance.

Key Requirements

How the vehicle is titled: The title application can include a joint tenancy with right of survivorship designation, which changes whether the vehicle passes automatically or through the estate.
Proper authority to transfer title: If survivorship does not apply, the DMV and any lender typically require proof of authority (for example, estate appointment documents) before the deceased owner’s interest can be transferred or the loan can be changed.
Minor child’s interest must be protected: If the minor inherits any part of the vehicle through intestate succession, an adult usually must act in a legally authorized role, and the transfer cannot simply be “signed over” as if the child were an adult.

What the Statutes Say

N.C. Gen. Stat. § 20-52 (Vehicle title application; survivorship option for co-owners) – Allows co-owners to choose a joint tenancy with right of survivorship on the title application.
N.C. Gen. Stat. § 29-15 (Intestate succession; shares other than a surviving spouse) – Sets who inherits when someone dies without a will (including children) if property is part of the estate.
N.C. Gen. Stat. § 29-16 (How shares are divided among descendants) – Explains how a child’s share is calculated when descendants inherit under intestacy.

Analysis

Apply the Rule to the Facts: The decedent died without a will and left a minor child, and the surviving co-parent needs documentation to deal with insurance and assets. If the vehicle title was set up with survivorship, the surviving co-owner usually can move the title into that person’s name with DMV-required proof of death and related paperwork, which often makes refinancing possible once the title and lien information are updated. If the title was not survivorship, the deceased co-owner’s share is typically an estate asset, and the minor child may have inheritance rights in that share under intestate succession, which can block a clean refinance until the estate (and the child’s interest) is handled through the proper court process.

Process & Timing

Who files: The surviving co-owner (for a survivorship transfer) or the estate’s personal representative/qualified collector (if the vehicle is an estate asset). Where: North Carolina Division of Motor Vehicles (title transfer) and, if estate authority is needed, the Clerk of Superior Court in the county where the estate is opened. What: DMV title transfer paperwork (often using the existing title plus a title application; if the title is missing, a DMV duplicate-title process may be required) and proof of death; if estate authority is required, Letters of Administration (or other court-issued authority) may be needed. When: As soon as practical after death, because insurance, tags, and lender requirements can create immediate problems.
Confirm the title status and lien: The first practical step is confirming whether the title reflects survivorship and whether there is a recorded lien. If a lien exists, refinancing usually cannot proceed until the lender’s payoff/assumption/refinance requirements are met, and the DMV record matches the intended ownership.
Address the minor child’s share if the vehicle is an estate asset: If the deceased co-owner’s share passes through the estate and a minor child is an heir, the transfer typically must be structured so an adult with legal authority can sign and the child’s interest is protected. This is often where families need guidance from the Clerk of Superior Court process and, in some cases, a guardianship or other court-approved arrangement before a sale, transfer, or refinance can be completed.

Exceptions & Pitfalls

“Co-owner” is not always survivorship: Two names on a title do not automatically mean the survivor owns the whole vehicle. The survivorship designation (or lack of it) can change everything.
Minor child cannot sign away rights: If a minor inherits any part of the vehicle through the estate, a parent cannot always simply sign the child’s interest away informally. A lender may refuse to refinance until the child’s interest is addressed through a legally recognized process.
DMV paperwork and lien cleanup: Missing titles, unreleased liens, or mismatched DMV records commonly delay transfers. When the title cannot be found or a lien release is missing, extra DMV steps are often required before any refinance can happen.

For more context on when a streamlined estate process may be available for personal property like vehicles and bank funds, see a small-estate process and whether full probate is required.

Conclusion

In North Carolina, whether a surviving co-owner can keep and refinance a vehicle after the other co-owner dies depends mainly on whether the title includes a joint tenancy with right of survivorship. If survivorship applies, the vehicle often transfers outside probate; if not, the deceased co-owner’s share usually becomes an estate asset and may pass to heirs, including a minor child, which can require court authority before transfer or refinance. The next step is to confirm the title’s survivorship status and, if needed, obtain estate authority from the Clerk of Superior Court before submitting DMV transfer paperwork.

Talk to a Probate Attorney

If you’re dealing with a co-owner’s death and need to transfer or refinance a vehicle while also protecting a minor child’s inheritance rights, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.