How Inheriting a Vehicle Through an Estate in Indiana

When someone who owns a vehicle in Indiana dies, the heir must transfer the title to their name. The Indiana Bureau of Motor Vehicles (BMV) handles these transfers. The process depends on the estate's assets and whether the vehicle has any outstanding loans. Some heirs can transfer titles quickly through a simple affidavit. Others must go through probate court.

Understanding Indiana Vehicle Inheritance Laws

Indiana Code § 29-1-8-1 recognizes that most estates are small and straightforward. Rather than requiring everyone to use probate court, the state created faster options for estates worth $100,000 or less. Indiana also allows vehicle owners to name a beneficiary on the title itself, which passes the vehicle directly to that person upon death without any court involvement or paperwork.

When the Estate Requires Probate

If the estate is worth more than $100,000 or does not qualify for the simplified procedures, then probate is necessary. A probate court appoints an executor (if there is a will) or an administrator (if there is no will) to manage the estate. The court issues letters testamentary or letters of administration to show that this person has legal authority to handle estate property, including vehicles.

The executor or administrator must bring these letters to the BMV along with the vehicle's title to transfer ownership. The letters prove to the BMV that a court appointed this person and gave them permission to manage estate assets. This creates a clear record that the transfer is authorized and legitimate.

When the Estate Does Not Require Probate

If the total value of the estate is $100,000 or less, the heir can use a simpler process called the small estate affidavit. Under this process, there is no need to go to probate court. Instead, the heir completes the Affidavit for Transfer of Certificate of Title for a Vehicle or Watercraft (State Form 18733). This form requires the heir to swear that the estate is worth $100,000 or less, that at least five days have passed since the death, and that no probate case has been started.

The heir submits this affidavit to the BMV along with a copy of the death certificate and the vehicle's title. The BMV then issues a new title in the heir's name. This process is faster and costs less than probate because there is no court involvement.

Another option is a Transfer on Death (TOD) beneficiary designation. If the vehicle owner named a beneficiary on the title before dying, that person automatically owns the vehicle. The beneficiary simply takes the title and a death certificate to the BMV to get a new title. This is the fastest way to transfer a vehicle.

When Multiple Heirs Inherit a Vehicle

If a vehicle title lists two or more owners, they own it together. When one owner dies, the other owner or owners automatically own the entire vehicle. This happens by law without any court action. The surviving owner just needs to bring a death certificate to the BMV to get the title corrected to show only their name.

If multiple heirs have equal claims to a vehicle but it was not held in joint ownership, all the heirs must agree on what to do with it. They can all sign the small estate affidavit together, or one heir can be authorized to handle the sale and give the money to the others. If heirs cannot agree, the probate court can decide who gets the vehicle or order it sold and the money split among them.

Required Documentation for Vehicle Title Transfer in Indiana

For Probated Estates

When the estate goes through probate, the executor or administrator must provide these documents to the BMV:

• A certified copy of the letters testamentary or letters of administration from the probate court
• The original certificate of title for the vehicle
• A completed application for title transfer
• A certified copy of the death certificate
• Proof that any required sales tax or use tax has been paid
• The $9.00 title transfer fee and any applicable registration fees

The letters must be certified by the court. The BMV will not accept photocopies. The death certificate must also be an official certified copy from the vital records office, not a copy from the funeral home or hospital.

For Non-Probated Estates

For small estate transfers, provide the following:

• The completed State Form 18733, signed and dated
• A certified copy of the death certificate
• The original certificate of title
• A completed application for title transfer
• Proof of payment of any required sales tax or use tax
• The $9.00 title transfer fee and any applicable registration fees

The affidavit must state that the estate value does not exceed $100,000, that at least five days have passed since death, and that no personal representative has been appointed. The heir must sign the form under penalty of perjury.

Special Circumstances for Vehicles with Liens

Outstanding Loans and Liens

If the vehicle has an outstanding loan, the lender's name appears on the title. Before transferring the title to an heir, the loan must be paid off. Once the loan is paid, the lender releases the lien, and the BMV removes it from the title.

If the estate has enough money, the executor or administrator pays off the loan from estate assets. If the estate does not have enough money to pay the loan, the heir can ask the lender about taking over the loan payments. Some lenders will allow this if the heir has good credit. If the heir cannot pay the loan and the lender will not work with them, the lender can repossess the vehicle and sell it to recover what is owed.

For small estate transfers, the vehicle cannot have any liens. The affiant must certify on the form that the vehicle has no liens. If a lien exists, the small estate affidavit cannot be used; the estate must go through probate court instead, or the lien must be paid off first.

Processing Title Applications in Indiana

Title applications are submitted to an Indiana BMV branch office. The applicant can visit in person during business hours or mail the application to the BMV's processing office. Mailed applications take longer to process than those submitted in person.

The title transfer fee is $9.00. In addition, the applicant must pay the annual registration fee for the vehicle type. A passenger vehicle registration fee is $21.35. All vehicles also pay a $15.00 Transportation Infrastructure Improvement Fee. Hybrid vehicles pay an additional $81.00 fee, and electric vehicles pay an additional $242.00 fee.

Depending on the county and municipality, additional local taxes may apply. Some counties and cities charge vehicle taxes that can add significantly to the total cost. The Indiana BMV provides a Quick Quote Tool where heirs can enter their vehicle information and location to see exactly what fees and taxes will apply.

The BMV processes applications upon receipt. Processing time varies but typically takes several weeks to several months. Applicants can check the status of their application through the myBMV portal using their driver's license number and date of birth.

Vehicles Exempt from Indiana Titling

Most vehicles must be titled in Indiana. However, some vehicles are exempt. Historic vehicles—those at least 25 years old—can be registered with a historic vehicle plate, though they still need a title. Certain government-owned vehicles and farm equipment used only for farming are exempt from titling and registration.

If an heir is unsure whether an inherited vehicle requires a title, they should ask the BMV. The staff can tell them whether the vehicle needs to be titled or if it qualifies for an exemption.

Vehicle Registration Requirements Following Title Transfer in Indiana

After getting a new title, the heir must register the vehicle. A title proves ownership, but registration permits the vehicle to be driven on Indiana roads. Both are required.

Prerequisites for Vehicle Registration

The heir must have a valid title in their name before registering the vehicle. The BMV will not issue registration plates without a valid title.

Indiana law requires liability insurance on all vehicles driven on public roads. The minimum required coverage is $25,000 bodily injury liability per person, $50,000 total bodily injury liability per accident, and $25,000 property damage liability per accident. The heir must show proof of insurance when registering the vehicle. An insurance card or the insurance company's declarations page is acceptable proof.

The heir should register the vehicle as soon as possible after receiving the title. Driving an unregistered vehicle on public roads is illegal and can result in tickets and fines.

VIN Inspection Requirements

A VIN inspection is not needed if the vehicle already had an Indiana title before the owner died. The BMV accepts the existing title record as proof of the vehicle's identity. However, if the vehicle is being titled in Indiana for the first time—for example, if it came from another state—the BMV may require a VIN inspection. If an inspection is required, the BMV will notify the heir. The heir would then schedule an inspection with a law enforcement officer or authorized inspection station and provide the inspection report to the BMV.

Applicable Fees and Taxes in Indiana

Vehicle Registration Fees

All vehicles pay a $15.00 Transportation Infrastructure Improvement Fee annually. This fee supports road and bridge maintenance across the state.

Hybrid vehicles pay an additional $81.00 supplemental fee per year. Electric vehicles pay an additional $242.00 supplemental fee per year. These fees offset the reduced fuel tax revenue from alternative-fuel vehicles.

Some counties and municipalities charge additional vehicle excise taxes or wheel taxes. These vary by location. The Indiana BMV's Quick Quote Tool shows the total cost for any specific vehicle based on its type and registration location.

Sales Tax and Use Tax

In most cases, inherited vehicles are not subject to sales tax when the title is transferred. The original owner paid sales tax when they first purchased the vehicle. The BMV may ask for proof that sales tax was paid. If the purchase history is unclear or sales tax was not collected, the heir may owe Indiana's 7% sales tax on the vehicle's fair market value.

Indiana Estate and Inheritance Tax

Indiana does not impose a state inheritance tax or estate tax. The state repealed its inheritance tax in 2013. This means heirs owe no state tax on inherited vehicles or other property. The federal estate tax may apply to very large estates exceeding $15,000,000 per person, but most heirs will not owe federal estate tax on inherited vehicles.

Contact Information

Indiana Bureau of Motor Vehicles
100 North Senate Avenue
Indianapolis, IN 46204
Phone: (888) 692-6841
Official Website: Indiana Bureau of Motor Vehicles