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1/17/17 at 11:08 AM 0 Comments

How to Gift a Car to Your Child Staying in a Different City

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If you are a proud parent wishing to gift a car to your child then you need to take care of several things as gifting or receiving a car is not as simple as it might sound.

Obey the Laws of Title Transfers

Carefully sign the title to your child. You need to abide by the state laws as different states have different guidelines for title transfers related to gifting cars. Generally, you will need to fill up a form known as the “Affidavit of Motor Vehicle Gift Transfer”. In case you don’t have the title then you must go to the tax collector's office and apply for a duplicate title with transfer.

Hire a Car Shipping Company

There are several cheap car shipping companies that you can choose to transport the car from one location to another. Make sure to compare the available auto transport quotes before finalizing the price of transportation.

Pay Taxes For Gifted Vehicles

Ask your child to fill out the bulk of the paperwork which includes tax paperwork. All the taxes should be paid properly before the vehicle enters into another state. In case you are looking for exemptions then have a look at the your state’s policy on tax exemptions for gifted vehicles.

Satisfy all liens

If you have purchased your car with borrowed money then their name will appear on the title. Before handling over the car to your child, you must pay off all loans, and all the lienholders should sign on the title certificate mentioning that it has been paid.

Get Your Child Insured

It is mandatory that your child should be covered by insurance before he/she takes the ownership of the gifted car. No one is permitted to drive vehicles before receiving an insurance. The vehicle registration certificate, a valid driving licence and the insurance card issued by the insurance company are important documents that your child should have before driving a car.

Get the Documents Delivered to RMV

Ask your child totake the completed documents to the Registry of Motor Vehicles. He/she will have to show the original title, with all the completed signatures and pay the fees as required by the state laws.

Additionally, ask your child to visit the local DMV Hub Office or Limited Service Office and provide the following:

  • The Certificate of Title showing assignment of ownership and indicating release of all liens (if any).
  • The old registration certificate (if available).
  • A current Insurance Card for the vehicle.
  • Completed Application for Registration and Title (form H-13B). This will entitle him/her to become as the purchaser, and you will be designated as the seller.
  • A permission letter from your side mentioning that your child can keep the same plates.

Hope this guide helps you to make this gifting process an easier and hassle free one.

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