Detailed Answer
When a Delaware resident dies owning a vehicle, you must determine whether that vehicle remains an asset of the decedent’s estate or passes automatically to another party. Follow these steps under Delaware law:
1. Examine the certificate of title
Start by reviewing the title issued by the Delaware Division of Motor Vehicles. If the decedent held sole title in their name at death, the vehicle is presumptively estate property. A recorded transfer in the DMV records before death generally extinguishes the decedent’s interest.
2. Identify joint ownership or beneficiary designations
If the title lists joint owners with rights of survivorship, ownership passes directly to the surviving co–owner. Delaware law permits joint titling under 21 Del. C. § 511 (Del. Code § 511).
Some states allow “transfer on death” (TOD) beneficiary designations on vehicle titles. If Delaware offers a TOD program and the decedent named a beneficiary, the designated person files the death certificate and title with the DMV to take ownership. Such a transfer bypasses probate.
3. Review any transfers before death
If the decedent sold or gifted the vehicle before death and properly recorded that transfer with the DMV, the vehicle is no longer estate property. An unrecorded document may not defeat estate claims. In rare cases, transfers made shortly before death can be challenged under Delaware’s Uniform Fraudulent Transfer Act (see 6 Del. C. §§ 1301–1312) if the transfer was intended to hinder creditors.
4. Use small estate procedures if no automatic transfer applies
When no joint owner or beneficiary exists and the vehicle remains solely in the decedent’s name, it becomes part of the probate estate. However, Delaware allows simplified administration for personal property under certain value limits. Under 12 Del. C. § 1301, a person entitled to inherit may file a summary affidavit instead of full probate if the total personal estate does not exceed the statutory threshold.
Helpful Hints
- Obtain a certified copy of the decedent’s death certificate early.
- Check the DMV’s online title records for any recorded transfers.
- Verify if the vehicle title includes joint tenants or TOD information.
- Consult the Delaware DMV form MV-503 for affidavit transfers of small estates.
- If you suspect a fraudulent transfer, discuss options with a probate attorney promptly.
Disclaimer: This article is for general information only and does not constitute legal advice. Consult a licensed Delaware attorney to address your specific situation.