By Merri Rudd, appeared October 19, 2006, Albuquerque Journal, Business Outlook
Reprinted with permission

Editor's note: This column may not be quoted or reproduced in whole or part without express written permission of the author.

Q: I was appointed personal representative for my mother's estate. How do I transfer title of her car to the person she wanted to have it? Can I just go to the DMV office with a copy of her death certificate and documentation of my personal representative status? I am also her only heir. Thank you. G.C.

I will assume that your mother's car has no liens or encumbrances on it, i.e., that the car is paid for in full. I will also presume that the car is currently titled in the sole name of your mother.

I talked to a helpful Motor Vehicle Division (MVD) staff person. She told me that you can go into any MVD office with:

1. the current car title;

2. your mother's death certificate; and

3. your Letters of Administration (if she had no will) or Letters Testamentary (if she had a will) from the court that show you have been appointed personal representative of your mother's estate.

Supplying these three documents to MVD should allow you to sign the back of the current title to the new owner (you). MVD will then issue a new title in your name, and you would also register the car in your name. No 3% excise tax should be due if a vehicle is inherited, rather than sold.

If your mother had a will leaving the car to someone else, as personal representative, you would have the authority to sign the back of the old title granting ownership of the car to the new owner. In the alternative, according to MVD, the personal representative could sign the old title over to himself/herself, and then sign the new title over to the new owner, who would register the vehicle. Using this method would require a bill of sale for $0 (inheritance), but presumably no 3% excise tax would be due.

If there is a lien or other encumbrance on the car, that may complicate things.

To help other readers, I want to mention another possibility. If a decedent's other assets transferred without a court probate and a vehicle was the only asset that needed a title transfer, a shortcut may be available. MVD has a form "Mvd10011"-Certificate of Transfer Without Probate.

Form Mvd10011 is akin to a "small estate affidavit" that I have discussed in other columns. When the total value of an estate is $30,000 or less, this affidavit can be used to collect funds or to transfer title to a decedent's motor vehicle to the successors without a court probate. The affidavit applies to bank accounts, stocks, bonds, mobile homes, cars, and other personal property, but does not apply to land, houses, or other real property.

Form Mvd10011 and other affidavits of successor in interest must be signed by the successors in the presence of a notary public. You cannot use this form or affidavit if a probate case is already open. Nor could you use form Mvd10011 if the vehicle were worth more than $30,000.

The phone number for MVD is 1-888-683-4636. Or visit their web site at www.state.nm.us/tax. Form Mvd10011, bills of sale, and many other MVD forms are available on the web site.

© 2006, Merri Rudd & Albuquerque Journal, All Rights Reserved