For most Florida families, the everyday car does not need to be in a revocable trust. Florida law already gives surviving spouses and heirs simple ways to transfer a vehicle after death, often without probate. Up to two family vehicles can also pass to a surviving spouse or children as “exempt property,” protected from the estate’s creditors.
That said, a trust can make sense for valuable or collectible vehicles, for more than two cars, or when there’s no spouse and the family situation is complicated. Here’s how vehicles pass in Florida and how to decide what’s right for yours.
Why Most Florida Families Leave Cars Out of Their Trust
A revocable living trust works by holding title to your assets. To get an asset into the trust, you retitle it in the trustee’s name. This is called funding the trust. For your home and bank accounts, funding is usually worth the effort. For a car, it often isn’t.
- Cars are replaced often. Every time you buy a new vehicle, you’d need to title it in the trust again. Many people forget, and the new car ends up outside the trust anyway.
- Most cars are financed or leased. When a lender holds a lien, or a leasing company owns the car, you can’t simply retitle it.
- Insurance can get complicated. Some insurers need the trust named on the policy, and a mismatch between the titled owner and the insured can cause problems with a claim.
- Florida already has easy transfer options. As explained below, a spouse or heirs can usually transfer a car through the tax collector’s office with a few forms.
How a Car Passes in Florida Without a Trust
Florida gives families several ways to transfer a vehicle after the owner dies. Which one applies depends on how the car is titled and who survives.
Co-owners listed with “or”
If the title lists two owners joined by “or” (for example, “Maria or James Lopez”), Florida law treats the car as held in joint tenancy. When one owner dies, the other owns the car outright and can sell or retitle it alone. The survivor brings the title and a death certificate to the tax collector’s office.
If the names are joined by “and,” each owner (or the deceased owner’s personal representative) must sign to transfer the car. That can pull the car into probate.
Surviving spouse transfers
When a car is titled only in the deceased spouse’s name, or in both spouses’ names, the surviving spouse can use Florida’s surviving spouse transfer form (HSMV 82152). The spouse signs the title over to themselves and provides a death certificate.
Transfers to heirs without probate
Florida law lets heirs transfer a car without a court order in many cases. If there’s no will, the heirs sign an affidavit that the estate isn’t in debt and that the spouse and heirs have agreed on how to divide the estate. If there’s a will that isn’t being probated, the application includes a sworn copy of the will and an affidavit that the estate isn’t in debt. The forms are filed with the county tax collector (Application for Certificate of Title, HSMV 82040).
Up to two cars as “exempt property”
When an estate does go through probate, Florida treats up to two motor vehicles as exempt property. Each must weigh 15,000 pounds or less, be titled in the decedent’s name, and be regularly used by the decedent or immediate family. Exempt property goes to the surviving spouse, or to the children if there is no spouse. It is protected from the estate’s creditors, except a lender with a lien on the car.
The family must claim exempt property in the probate case, generally within 4 months after the notice of administration is served. A car left to a specific person in the will is not treated as exempt property. (4 assets exempt from probate in Florida)
If there’s no easy route
If none of these options fit, the car is handled with the rest of the estate. The personal representative named by the court signs the title to transfer or sell the car. (Florida probate attorney)
When It Can Make Sense to Put a Car in Your Trust
There are situations where titling a vehicle in your trust is worth the extra step:
- Valuable or collectible vehicles. A classic car, a luxury vehicle, or a collection is a significant asset. Holding it in the trust lets your successor trustee manage or sell it right away, following your instructions.
- More than two vehicles. Exempt property covers only two motor vehicles. Additional cars may need to go through probate.
- Boats, RVs, and trailers. Exempt property covers motor vehicles of 15,000 pounds or less. A boat or a large motorhome may not qualify, so it may be worth placing in the trust.
- No spouse, and heirs who may not agree. The heir transfer process depends on the family agreeing and signing an affidavit that the estate isn’t in debt. A trust puts one person, your successor trustee, in charge.
- Specific wishes for a vehicle. If you want a car to go to a particular grandchild, or to be held until they reach a certain age, a trust can carry out those instructions.
- Incapacity planning. If you become unable to manage your affairs, your successor trustee can sell or manage a trust-owned car without a court-appointed guardian.
If a car isn’t in your trust when you die, a pour-over will can direct it into the trust. That still may require probate, so it works best as a safety net.
Financed and Leased Cars, Insurance, and Liability
Financed cars
If you have a car loan, the lender has a lien on the title. You generally can’t retitle the car into your trust without the lender’s involvement. Most families wait until the loan is paid off. If you die with a loan outstanding, the lien stays with the car, and whoever takes the car takes it subject to the loan.
Leased cars
A leased car belongs to the leasing company, not to you, so it can’t be placed in your trust. What happens to the lease at death depends on the lease contract. Your personal representative or family should contact the leasing company.
Insurance
If you do title a car in your trust, call your insurance agent first. Many insurers will list the trust as an additional insured or adjust the policy so the titled owner and the insured match.
Liability
Under Florida law, a car’s owner can be held responsible when someone else causes an accident while driving it with permission. Putting a car in a revocable trust does not protect you from that liability. A revocable trust isn’t an asset protection tool, and you remain in control of everything in it. If liability is a concern, talk with your attorney about insurance coverage, including umbrella coverage [LINK WHEN LIVE: Umbrella Insurance and Asset Protection in Florida, 11/13], and other asset protection planning.
How This Plays Out in Practice
The couple with two everyday cars. A married couple in Plantation has a revocable trust for their home and investments. Their two cars are titled “Ana or Luis.” When Luis passes away, Ana takes the title and a death certificate to the tax collector’s office and becomes the sole owner. Neither car needed to be in the trust.
The widower with a classic car. A widower in Boca Raton owns a restored 1967 convertible worth far more than his daily driver. He has three children and wants the convertible to go to his son. He titles it in his trust, with instructions to distribute it to his son. When he passes, his successor trustee transfers it without needing the other children to sign an affidavit.
The new car that never made it into the trust. A woman funds her trust carefully but later trades in her car. The new car is titled in her name alone. After she passes, her daughters find that the estate owes no debts. They file a sworn copy of her will and an affidavit with the tax collector’s office and transfer the car without opening probate. It worked, but it took paperwork the trust could have avoided.
When to Speak with an Estate Planning Attorney
Consider talking with an estate planning attorney about your vehicles if you:
- Own a classic, collectible, or high-value vehicle
- Have more than two cars, or own a boat, RV, or trailer
- Are single or widowed and want one person to handle your vehicles
- Want a vehicle to go to a specific person, or to be held for a young beneficiary
- Have a trust but aren’t sure which assets should be in it
- Recently moved to Florida and haven’t reviewed how your cars are titled
An attorney can look at your full plan, including how your home, accounts, and vehicles are titled, and make sure everything works together.
SJF Law Group helps families in Broward, Miami-Dade, and Palm Beach Counties with wills, trusts, and trust funding. Meetings are available in person at our Plantation office or remotely. Call (954) 580-3690 or contact us online to schedule a complimentary consultation. Current clients can schedule a complimentary annual plan review.
Frequently Asked Questions
Does Florida allow a transfer-on-death designation for cars?
No. Florida does not currently offer transfer-on-death registration for vehicle titles. The closest options are titling the car with a co-owner using “or,” or titling it in a revocable trust.
Does my car go through probate in Florida if it’s not in my trust?
Often not. A surviving co-owner listed with “or” or a surviving spouse can usually transfer it directly. Heirs can often transfer it with an affidavit if the estate has no debts. If the estate does go through probate, up to two cars can pass as exempt property.
How do I put my car in my trust?
You apply for a new title at your county tax collector’s office, listing the trustee of your trust as the owner. If you have a loan, contact your lender first. Call your insurance agent so the policy matches the new owner.
Can creditors take my car after I die?
If the car qualifies as exempt property, it is protected from most of the estate’s creditors. A lender with a lien on the car is the exception. The lender can still enforce its lien.
What happens to a leased car when the driver dies?
The leasing company owns the car, so it doesn’t pass through the estate or a trust. The lease contract controls what happens next. The family or personal representative should contact the leasing company.
Does putting my car in a trust protect me from lawsuits?
No. A revocable trust does not protect assets from claims against you. Florida holds vehicle owners responsible for accidents caused by people they allow to drive their cars. Insurance is the main protection.
About This Article
Written by Samantha Fitzgerald, Esq. of SJF Law Group, a Florida estate planning and probate law firm serving Broward, Miami-Dade, and Palm Beach Counties.
Learn more: Wills, Trusts & Estate Planning
Related reading: How to Fund Your Trust: A Checklist
Watch: Should a Car Go In Your Trust?
This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Every family’s situation is different, so speak with an attorney about your specific circumstances.
