Transfer on Death Car Title in California: Setup, Claims, Taxes

In California, you can name a beneficiary directly on your vehicle title so the car passes automatically at your death and skips probate. This is called a transfer on death car title in California, and it’s governed by Vehicle Code sections 4150.7 and 5910.5.¹ The designation costs $10 to add, one visit or one mailing to the DMV handles it, and you can change or cancel it at any time while you’re alive.

Who Can Use a TOD Designation

Only a sole owner can set one up. Vehicle Code section 4150.7 requires exactly one owner and one beneficiary.² If two people are on the title as joint tenants with right of survivorship, the surviving co-owner already inherits, so a TOD isn’t available. If they’re tenants in common, each share goes through that owner’s estate at death and a TOD can’t override that.³ The vehicle also has to be registered in California; an out-of-state title can’t run through the California TOD system.

The beneficiary doesn’t have to be a person. The DMV allows an individual, corporation, trust, partnership, association, or other entity.¹ Naming a family trust or an LLC works fine.

How to Add the Beneficiary

There’s no separate TOD form. You write “TOD” and the beneficiary’s full legal name on the second line of your California Certificate of Title, sign as the registered owner, and submit the title to the DMV.¹ You can go to any California DMV office or mail the title to the DMV’s processing center in Sacramento. An appointment scheduled online avoids the walk-in wait.

The fee is $10. If your original title is lost or damaged, apply for a replacement first using Form REG 227; a duplicate title costs $28.⁴ An outstanding loan doesn’t block the designation; the lienholder simply stays on the title.

Get the beneficiary’s legal name right and make sure your signature matches DMV records. Once processed, the DMV issues a new title showing you as owner and the beneficiary listed after “TOD.” The beneficiary has no ownership rights while you’re alive and doesn’t sign anything.²

Changing or Canceling the Designation

You can revoke or change the beneficiary at any time during your lifetime in one of two ways: sell or transfer the vehicle to someone else, or apply for a new title either without a beneficiary or with a different one.⁵ The DMV doesn’t allow partial edits, so any change means a new title is issued.

A will or trust cannot change a TOD designation on a vehicle title. The only route is through the DMV.⁵ If your will leaves the car to your daughter but the title names your brother, the brother inherits it. The title controls.

If the Beneficiary Dies Before You

If your named beneficiary dies before you do, the designation becomes ineffective. Under Vehicle Code section 5910.5, when there is no surviving beneficiary at the owner’s death, the vehicle reverts to the owner’s estate and goes through probate or other estate settlement like any other asset.⁵ Update the title with a new beneficiary if this happens.

Claiming the Vehicle After the Owner Dies

When the owner dies, ownership passes to the surviving beneficiary by operation of law.⁵ The beneficiary still has to get the title reissued in their name by submitting:

A certified death certificate from the California Department of Public Health or the local county recorder’s office.
An Affidavit for Transfer Without Probate (REG 5), available when the total estate does not exceed $150,000 and at least 40 days have passed since the date of death.⁶
The original California Certificate of Title showing the deceased owner and the TOD beneficiary.
The standard $15 transfer fee.⁴

Any outstanding registration fees or penalties on the vehicle have to be cleared before the DMV processes the transfer. A TOD transfer to a named beneficiary is not subject to California use tax.⁷

Insurance

The deceased owner’s auto policy doesn’t automatically cover the beneficiary. Some insurers extend a grace period of around 30 days while the family sorts out the estate, but this varies by carrier. Contact the insurer promptly and put coverage in place before driving.

Loans Don’t Disappear

The beneficiary’s interest in the vehicle is subject to any loan or security interest that existed during the owner’s life.⁵ If money was still owed on the car, the lender’s claim survives. The estate is generally responsible for paying the loan balance; if the estate can’t cover it, the beneficiary may need to refinance or pay it off to keep the vehicle. California is a community property state, so a surviving spouse may be liable for the balance even if they weren’t on the loan.

Tax Treatment

Naming a TOD beneficiary is not a gift. Because you can revoke the designation at any time and it has no effect until death, the IRS does not treat it as a completed transfer, and no gift tax return (Form 709) is required when you add it.⁸

At death, the vehicle’s value is included in the owner’s gross estate for federal estate tax purposes. For 2026, the federal estate tax exemption is $15,000,000, so estate tax reaches only very large estates.⁹ Inherited property generally receives a stepped-up basis equal to fair market value at the date of death. For an ordinary car that has depreciated this rarely matters, but for a classic or collectible vehicle the step-up can save the beneficiary real money on a later sale.

If the Beneficiary Receives SSI

A beneficiary on Supplemental Security Income should think about resource limits before inheriting. SSI limits are $2,000 for an individual and $3,000 for a couple in 2026.¹⁰ One vehicle is excluded from the resource count regardless of value, as long as you or someone in your household uses it for transportation.¹¹

The problem is inheriting a second car when you already own one. The second vehicle counts as a resource at fair market value, and if it pushes you over the limit you lose SSI eligibility for any month you exceed it. Selling the extra car brings you back under, but giving it away or selling below market value can trigger up to 36 months of ineligibility.¹¹ Plan the timing carefully if this applies to you.

1
California State Department of Motor Vehicles. Transfer on Death (TOD) Beneficiary
2
California Legislative Information. California Vehicle Code VEH 4150.7
3
California State Department of Motor Vehicles. Co-Owners
4
California State Department of Motor Vehicles. Registration Fees
5
California Legislative Information. California Vehicle Code VEH 5910.5
6
California State Department of Motor Vehicles. Estate Valued at $150,000 or Less
7
California State Department of Motor Vehicles. Transactions Not Subject to Use Tax
8
Internal Revenue Service. Gifts and Inheritances
9
Internal Revenue Service. What’s New – Estate and Gift Tax
10
Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet
11
Social Security Administration. Understanding Supplemental Security Income SSI Resources