Gifting a Car in Indiana: What to Do

The circumstances of gifting a car may be different. Some want to give a car to a family member who has just received a driver’s license, others may want to buy a new car and give the old one to a daughter or son. The car may be gifted due to a health condition that prevents the owner from driving. Finally, if a relative cannot afford a car but desperately needs one, a generous family member can help by gifting one. The process of gifting a car in Indiana will be the same in all these cases. Find out what steps to take and whether it is a good idea to gift a car to your relative.

The car you present must be free of loan debts to get ownership from a bank. If you have inherited a car and the Title holder dies, you may need to get a transfer order from Probate Court. Check the Indiana registry to see the requirements. If the Title lists a couple as holders and one of the spouses dies, the second spouse may transfer the Title.

Even if you gift a vehicle and there is no monetary benefit from the transaction, you should read the terms of the contract with the recipient. Make sure they know they will be responsible for expenses such as insurance and maintenance when they own the car. You also need to find out who will pay the taxes and other fees associated with the transfer of ownership.

When filling out the Title, you must sign your name as the seller and the name of your relative as the buyer. You must also enter the odometer reading. You must indicate the value of the car as a gift, put the date, and sign the Title. If you do not transfer ownership to your relative to whom you gift the vehicle, you will still be the legal car owner by state laws. Since the Title is a legal document, all details must be complete.

After signing the Title, you need to make sure the new owner has car insurance. In Indiana, you don’t have to take your vehicle to an inspection station for a safety or emissions check, but other states may require this. Some states require early inspections even if inspections have already been completed this year. You can check your state’s requirements on the Department of Motor Vehicles website.

When going to the DMV to complete the transfer, make sure that you have the following paperwork:

• Copy of completed Title
• Insurance policy
• Car registration card
• Proof of identity
• Paying a transfer fee

Upon submission of these documents and payment of the fee, the DMV issues a temporary registration certificate to the new owner and mails the new Title. Contact the DMV to see if additional documentation is required.

The recipient is responsible for ensuring that the vehicle remains registered in the country of residence after the transfer of ownership. The recipient must receive the Title within two weeks and ensure all information is correct. In case of errors, contact the vehicle registration office. When family members have ownership, they can use the car.

When you give or receive a car as a gift, you may or may not be required to pay taxes. It all depends on which state you live in. Indiana residents do not have to pay sales tax in Indiana. As of 2023, an individual can only give up to $17,000 without having to report the gift in taxes.

Each state has its regulations for gifting a car to a family member. You should check to see if your state’s DMV requires witnesses or notaries before you sign the title.

Regardless of the intention, it is always worth considering the needs and desires of the recipient before gifting a car. They may not like the model or be offended by such a gift. Make sure the recipient can afford the insurance and maintenance costs.

In most cases, selling a car to a dealership and gifting money instead is a better option. This way, your relative will be able to buy a vehicle he or she wants or use the money as a down payment for a dream car.