How to sell a car you inherited

Before anything else, find the title and check whether a loan is still open on the car.

First, check for a car loan

A loan doesn't pass to you just because the car does. The CFPB says that when someone dies, the money and property in their estate go toward repaying their debts, and if the estate has no money, the debt usually goes unpaid (CFPB).

Unless you were a co-signer, a joint account holder or another exception applies, only the estate owes the debt. Debt collectors may contact a surviving spouse or the person running the estate, but the CFPB says it's illegal for them to suggest you must pay from your own money.

If you co-signed the car loan, the debt can be yours. Either way, a lender with a lien has to be paid off before any buyer can receive the title. Our loan guide covers the payoff.

Pick the route that fits

A transfer-on-death beneficiary was named

Some states let an owner name who gets the car at death. In Nevada, ownership passes to the named beneficiary automatically once all legal owners have died, and the beneficiary then has to act to become the official owner (Nevada DMV). To claim the car, the beneficiary brings certified death certificates for every owner, the Beneficiary's Affidavit for Title (VP 241), and a $20 title fee.

Two Nevada limits catch people out. The beneficiary must be added before the owner dies; it can't be added afterward. And a loan or lien added after the beneficiary was named removes the beneficiary automatically.

Ohio allows this only for a sole owner. The owner signs a notarized Affidavit to Designate a Beneficiary (BMV 3811) and files it with a county clerk of courts title office (Ohio BMV). After the death, the beneficiary needs a certified death certificate copy and pays the title fees.

A small estate, with no probate

Some states let an heir move a car without probate. California lets an heir transfer a car titled in California, on an estate worth $150,000 or less, with the Affidavit For Transfer Without Probate (REG 5) (California DMV). The heir signs it, and it can be used once 40 days have passed since the owner died. It can't be used for a car titled in another state.

Nevada's DMV lists a 40-day wait after death for a transfer without probate using form VP 024 (Nevada DMV).

Illinois sets a deadline instead of a wait. When a car passes under the state's small-estates rules, the person receiving it must mail or deliver the last title and related papers to the Secretary of State within 120 days (625 ILCS 5/3-114). The same law lets a legatee, representative or heir transfer the title with a death certificate and an attorney's affidavit on the attorney's letterhead.

The car passes to a spouse

Illinois gives spouses their own clock. Under 625 ILCS 5/3-114, proof of death, the transfer and the marriage must be filed within 180 days after the owner's death.

If the title shows both spouses, look at the word joining the names. Several states, Utah, Wisconsin and West Virginia among them, say that when names are joined by "OR", either owner may sign alone, and when joined by "AND", every owner signs. We didn't find a page that says how the "OR" rule works once one owner has died, so ask your title agency before you sign.

None of the above

If no beneficiary was named and the estate is too big for a small-estate route, the car may have to go through probate. We didn't confirm the paperwork for every state, so ask the court or the estate's lawyer what the title agency will accept.

Why the title has to be yours before you sell

Some states expect the person signing a title over to be its owner. Maryland says the seller must have a valid Maryland Certificate of Title in their own name before selling (Maryland MVA). South Carolina tells buyers to make sure the seller has the title in their own name (SC DMV). Maine requires a buyer who isn't a licensed dealer to get a title issued in their own name before transferring it again (29-A s. 662).

So the order is: get the car into your name, or into the estate representative's hands, through one of the routes above, then sign it over to the buyer.

Papers to gather

• certified copies of the death certificate (Nevada wants one for every owner)
• the original title, if you can find it
• the affidavit or court papers your route needs, such as REG 5, VP 241 or VP 024
• loan details and the payoff figure, if the car is financed
• your own photo ID

If the title is missing, our no-title guide explains the options.

Signing rules, state by state, for the new owner

Once the car is in your name, you sign as the seller. Here's the one rule from each state's title-transfer page or statute that most often trips up a new owner.

Pennsylvania's statute is a good example of how strict the signing can be: the assignment must be "sworn to before a notary public or other officer empowered to administer oaths" (75 Pa.C.S.).

Keep it, fix it, or sell it

Keeping and repairing it makes sense when the car runs, the repairs are small, and someone in the family needs a car. Retitle it first either way.

Selling it as it is fits when the car has sat for a long time, needs work nobody wants to pay for, or the estate needs to close. A car that sat unused often won't start; our guide to a car sitting for years covers what usually goes wrong.

Selling the inherited car to us

We buy whole non-running and junk cars, including ones that came through an estate. Once the title is in your name or the estate's, you can sell the whole car as it sits, with free pickup anywhere in the US. Asking for an offer? Mention which route you used, whether there's a loan, and the car's condition.

Not sure which route applies to you? Call (877) 421-6008.