How to Know Whether a Decedent’s Car Belongs in the Probate Estate
Detailed Answer
The North Carolina probate court only has power over assets that are part of the decedent’s probate estate. To decide whether a vehicle must be treated as estate property, walk through the five questions below. In many situations, the title record at the Division of Motor Vehicles (DMV) provides the decisive evidence.
1. Whose name is on the certificate of title?
- Sole ownership: If the certificate of title lists only the decedent, the car is probate property unless an exception in sections 2–4 applies.
- Joint ownership with right of survivorship (JTWROS): A title that states “JTWROS,” “OR,” or “TOD Beneficiary” automatically vests ownership in the surviving co-owner. No probate court order is needed.
- Joint ownership without survivorship: Titles showing “AND” (without JTWROS language) create a tenancy in common. The decedent’s fractional interest is probate property.
Check the DMV’s online title inquiry or request an official vehicle record (Form MVR-605A).
2. Did the decedent complete a valid title assignment before death?
Under N.C. Gen. Stat. § 20-72(b), ownership transfers only when (1) the seller endorses the back of the title, (2) the buyer signs, and (3) the buyer receives delivery of the endorsed title. A signed but undelivered title—or an unsigned bill of sale—does not move the car out of the estate.
3. Will a surviving spouse use the “year’s allowance”?
A surviving spouse may claim up to $60,000 under N.C. Gen. Stat. § 30-15 by filing Form AOC-E-100 within one year of death. If the vehicle’s value fits within that allowance, the clerk of court can assign the car directly to the spouse. The vehicle then bypasses formal probate, even though it began as estate property.
4. Does the small-estate affidavit apply?
When the total personal property subject to probate is no more than $20,000—or $30,000 if the applicant is the sole heir—the personal representative may use N.C. Gen. Stat. § 28A-25-3 (Form MVR-317). The DMV will retitle the car to the affiant without opening a full estate, but the vehicle still counts as estate property for creditor claims.
5. Did the decedent give the car away more than three years before death?
For probate purposes, completed lifetime gifts are outside the estate. However, an unpaid purchase-money lien may bring the lender into the estate administration. Always obtain a lien release (Form MVR-4) before distributing the vehicle.
Helpful Hints
- Order a certified copy of the title if the original cannot be found (Form MVR-4 “Duplicate Title”).
- Ask the DMV clerk to confirm whether JTWROS language appears in the active electronic record, even if the paper title is silent.
- Compare the vehicle’s fair-market value to the $60,000 year’s-allowance cap before deciding whether to claim the car.
- Notify the insurance carrier immediately. Coverage must stay in force until the new owner retitles the car.
- Keep a mileage and condition log; the personal representative is accountable for estate assets under § 28A-13-6.
Next step: Still unsure whether the decedent’s vehicle belongs in the probate estate? Our North Carolina probate team routinely guides families through DMV title questions, year’s allowances, and small-estate affidavits. Call us today at (919) 341-7055 for a no-pressure consultation.
