Transferring Pennsylvania Car Title and Beneficiary Accounts After Death of a Loved One

Understanding the Process

Losing a loved one and navigating all the legal aspects of transferring car titles and bank accounts can be overwhelming. This article aims to help you better understand the procedures for both and how to prepare yourself within the State of Pennsylvania.

Transferring Car Titles

Joint Ownership

In Pennsylvania, transferring a car title after a death involves specific procedures to ensure a smooth transition. When a vehicle is jointly owned by the deceased and another person, the transfer process is quicker and often seamless. In scenarios with the right to survivorship, the surviving owner can initiate the title transfer without involving probate by providing proof of the deceased owner’s death.

The Role of Probate

Probate is the legal process of settling a deceased person’s estate, which can often be lengthy. Even though the joint owner may transfer the title without probate, they must complete the necessary title transfer forms, specifically the “MV-39” form or the “Application for Pennsylvania Certificate of Title.” Along with these forms, a copy of the death certificate and any additional documents required by the Pennsylvania Department of Transportation should be submitted.

Required Documentation

The surviving owner may also need to show identification, proof of relationship with the deceased owner, and pay a small fee for the title change. Once the Pennsylvania Department of Transportation has all the required forms and documents, the surviving owner will receive an updated title via mail.

Updating Registration and Insurance

Next, the new owner must update the car’s registration to reflect their sole ownership. Lastly, they may need to adjust the insurance coverage or transfer the policy into their name. Joint owners should be aware that any outstanding fees will fall on them, so they must communicate transparently with the loan holder regarding their new sole ownership of the vehicle.

Tenants by the Entirety

In cases of tenants by the entirety, the surviving spouse has rights that differ from standard joint ownership. When a spouse is a tenant by the entirety, they automatically become the sole owner after their spouse passes. If the deceased owner left a Will and appointed an executor for their estate, the executor plays a critical role in transferring assets, including a car title.

Executor’s Responsibilities

The process for the executor is similar to that of joint ownership, but there are key differences. Before initiating the car title transfer, the executor must obtain a certified copy of the death certificate. Pennsylvania has different types of car titles: individual, joint, and trust titles. The executor will be initiating a trust title transfer.

Necessary Forms for Executors

To transfer the car title, the executor must complete the “MV-39” and “Application for Pennsylvania Certificate of Title.” Additional supporting documents may include letters of testator, Form MV-4ST (the “Vehicle Sales and Use Tax Return/Application for Registration”), and the executor’s identification. After the Pennsylvania Department of Transportation processes the documents, the executor will receive a new title in the mail. Following this, the executor may change the car’s registration, license plate, and insurance into their name.

Transferring Bank Accounts

Understanding Account Types

Now, let’s address the transferring of bank accounts after the death of a loved one. The type of bank account the deceased held determines the disposition of the assets. If the monetary value is transferred to heirs or if the government holds it after death, Pennsylvania law facilitates forming protective trusts for heirs in a Will, which avoids the lengthy probate process.

Joint Bank Accounts

A joint bank account allows you to set up an account with anyone of your choosing, such as your spouse. If this account includes the clause “joint with rights of survivorship,” then upon your death, the bank will transfer all funds to the surviving joint owner.

Payable on Death (POD) Accounts

Additionally, if you hold a Payable on Death or POD account, this avoids probate fees when you pass and allows your designated beneficiary to access the funds immediately. The beneficiary will need to show proof of death and identification to claim their inheritance.

Estate Administration Accounts

If you prefer not to have yourself or your beneficiary in control of the money after your passing, you can set up an estate administration account on behalf of your beneficiaries.

Unclaimed Accounts

If none of the above accounts are set up and there are no heirs, your bank account will become unclaimed property after your death. Consequently, the government will take custody until someone with valid identification claims it.

Seeking Legal Advice

In complex cases involving unique legal considerations, seeking legal advice can be invaluable. Attorneys specializing in estate law can provide guidance, ensuring a smooth transition process.

The attorneys at Pyfer Reese Straub Gray & Farhat are here to assist you in navigating the process of transferring car titles and beneficiary accounts after the death of a loved one. Contact us at 717-299-7342 to schedule a convenient appointment to discuss your estate planning needs at our Lancaster, Willow Street, or Ephrata office.