Transfer Auto Title or Sale of Vehicle - Intended inheritance (no will)

[enterprisenx01]

Jurisdiction

Pennsylvania

Hello,

My father recently passed away (resident of PA) and is survived by my stepmother. I live in NJ. Though, this was not stated in any document such as a will, he told my stepmother he wanted me to inherit his sportscar, make/model not important for this discussion. The vehicle is titled in his name with no lienholder. My stepmother is insistent I take possession of the vehicle but I am unsure of the best way to do it with the least tax liability.

I don't think I am really able to inherit it as since it is not in any written document, my guess is my stepmother would first need to have it re-titled in her name going through the process with his death certificate. Then maybe the best course is for her to sell to it to me for say some amount of assumed value (I know $1 sale is a cliché and probably triggers an audit). Do we both pay taxes on the sale her - taxed on proceeds in PA and me in NJ for sales tax of buying through a private party? Is this the best way to go about taking possession? What about her gifting it to me and whatever the value is and I just I pay taxes on the gift

Really I am just confused how the best way to go about this as I think she needs to get it re-titled at the very least but then re-titling to me in another state, just not sure if that is better as a gift or just like its a private sale.

Thank you for helping to clear this up for me.

 

[adjusterjack]

I found nothing at PennDot's website regarding your specific situation. There is some indication that a gift is exempt from the tax.

She may have to open small estate probate and become representative of the estate in order to transfer vehicle ownership to you.

I don't know that for sure.

The "best" way to handle this is for you and her to go to the DMV office with title and death certificate in hand, and somebody there will give you chapter, verse, and forms for the "how-to-do."

Any other course of action, and any reliance on strangers on the internet, would be foolish.

 

[zddoodah]

I don't think I am really able to inherit it as since it is not in any written document, my guess is my stepmother would first need to have it re-titled in her name going through the process with his death certificate.

Under Pennsylvania law, when a person dies without a will and is survived by a spouse and descendants who are not also descendants of the surviving spouse, the estate is split 50/50 between the surviving spouse and surviving descendants. What the PA DMV will need is something only someone local can tell you, but it is not the case that your father's widow will have to have the car titled in her name and then transfer it to you.

Do we both pay taxes on the sale her - taxed on proceeds in PA and me in NJ for sales tax of buying through a private party?

Not really sure what sort of taxes you're envisioning. PA does seem to have an inheritance tax, but it appears that transfers to a surviving spouse are exempt and that transfers to a direct descendant are taxed at 4.5%. Not sure if it matters that you're not a PA resident. How much is the car worth?

Is this the best way to go about taking possession?

This is a call for legal advice (see the disclaimer at the bottom of the page), and no one here knows what's "best" for you. It does appear to me that you may be overthinking this.