The loss of a loved one is a difficult time, which can be exacerbated by having to go through probate court.
The ultimate goal of this administrative mechanism is to ensure that the financial matters and property of the deceased (also known as the decedent) are handled according to their wishes and all state and local laws.
Fortunately, Illinois offers several methods to transfer a vehicle upon death without going through probate, which can save time, money, and stress for the deceased’s family. Let’s explore your options and offer essential guidance for navigating this emotionally charged process.
Understanding Joint Ownership
While necessary in many cases, probate can be time-consuming, expensive, and public.
The probate process often takes several months to a year or more, depending on the complexity of the estate. During this time, beneficiaries may not have access to inherited assets, including vehicles.
One of the simplest ways to avoid probate for vehicle transfers is through joint ownership. Per the Illinois Secretary of State, when a vehicle title is in the names of two or more persons, it’s considered a joint tenancy. By law, upon the death of one owner, the surviving joint tenant(s) automatically become the sole owner(s) of the vehicle — the right of survivorship.
To establish joint ownership, the vehicle in question should be titled in the names of all intended owners, using “and” or “or” between names, and should include language indicating the right of survivorship.
After a death in the state of Illinois, the surviving joint owner will need to have the decedent’s name removed from the title. You can book an appointment to apply in person at a licensing bureau, bring an original document that establishes your relationship (such as a marriage or birth certificate), and follow their guidelines for vehicle testing and required fees.
To transfer the title, the surviving joint owner must act within 120 days of the decedent’s death. Be prepared to submit:
- A copy of the death certificate or abstract.
- The original jointly-owned title.
- A completed Application for Vehicle Transaction(s) (VSD-190) marked as “Corrected Title.”
- The $15 title fee and if applicable, a $3 corrected registration fee will be made payable to the Secretary of State.
This process effectively removes the deceased’s name from the vehicle’s title without going through probate.
Peace of Mind
In Illinois, when an estate is valued at less than $100,000, probate court can be bypassed through the use of a Small Estate Affidavit, whether a last will and testament exist or not, as long as the estate does not include any real estate.
This legal tool can play an essential role in estate planning for those with more modest assets. Per Illinois law, a Small Estate Affidavit can be executed by one or more heirs, and it is worth noting that all heirs are not required to sign the document.
The administrator of the decedent’s estate (usually a close family member or friend) or the affiant can utilize this form to collect the deceased person’s assets, pay their debts, and distribute the remainder of the assets to heirs and beneficiaries instead of going through the expensive probate process.
To transfer a vehicle via Small Estate Affidavit, the person administering the estate should submit the following documents to the Illinois Secretary of State:
- An affidavit including the vehicle year, make, and VIN. The affiant does not have to be an heir or legatee.
- The title to the decedent’s vehicle.
- If there is a will, a certified copy must be submitted.
- A copy of the death certificate.
- A completed Application for Vehicle Transaction(s) (VSD 190).
- Completed Form VSD 333, Odometer Disclosure Statement for Title Transfers.
- The $165 title fee and any applicable registration fees as specified on the application, made payable to the Secretary of State.
- Proof of compliance with the Vehicle Use Tax (RUT-50) and appropriate taxes as specified on the form, made payable to the Illinois Department of Revenue but submitted to the Office of the Secretary of State.
When the estate isn’t being probated and the Small Estate Affidavit procedure isn’t applicable (for example, if the vehicle is valued at over $100,000 or if the decedent owned real estate) or if time is of the essence, the Attorney’s Affidavit method can be used.
This requires the decedent’s legal counsel to submit an official letter listing the name and address of the deceased person, the date of death, VIN, vehicle make and model details, who the title is being transferred to, and any other pertinent information. All applicable licensing and registration fees must be paid in conjunction with this method of transfer.
TOD and Living Trusts
Illinois allows for Transfer-on-Death registration for vehicles, as long as it is owned outright with no outstanding liens. This method allows the owner to designate a beneficiary who will automatically receive ownership of the vehicle upon the owner’s death.
The Illinois Secretary of State Vehicle Services Department offers a Beneficiary Affidavit form that allows a vehicle owner to add or remove a beneficiary to the title. To transfer the ownership to the beneficiary, the beneficiary must submit the title (if available), applicable title fee, certified
death certificate of the vehicle’s legal owner, the appropriate tax form, and a check payable to the Illinois Department of Revenue, if applicable.
One of the most flexible estate planning tools is a living trust, which is a legal arrangement that allows you to transfer ownership of your property to a trust account for various financial purposes during your lifetime.
The trust can hold the vehicle for the benefit of the designated beneficiaries, and the trustee manages the vehicle according to the terms of the trust.
However, this strategy has certain drawbacks, as putting a car in a trust exposes it to legal liability if there is litigation resulting from an accident. Also, many auto insurance companies will not cover a vehicle owned by a trust.
Transferring a vehicle without probate may have legal and tax implications, so it’s best to partner with a knowledgeable estate planning expert who can help ensure your assets are distributed according to your wishes, without unnecessary complications.
Our compassionate advocates are here to help you effectively manage your affairs and minimize the burden on your loved ones. Protect your family’s best interests — reach out to schedule a consultation today.
