Ask the expert: what is the SC DMV doing that could affect my estate plan?

Ask the Expert: What is the SC DMV doing in July that could affect my estate plan?
Expert Answer: Beginning July 1, 2025, it will be possible to establish a Transfer on Death (TOD) designation on titles for vehicles, mobile homes, watercraft, and outboard motors. The TOD designation will have the effect of passing the titled asset directly to the named TOD beneficiary or beneficiaries without going through the probate process. The designation will be made by completing a Form with the Department of Motor Vehicles (for vehicles and mobile homes) or the Department of Natural Resources (for boats and outboard motors).

What does this mean practically? Here is an example of how this could play out:
Example: Joe wants his truck to go to his son Jeff when Joe dies. Joe will soon be able to submit a form to the DMV making Jeff the Transfer on Death (TOD) beneficiary of the truck. Then, when Joe dies, the title to the truck will pass directly to Jeff without going through probate.

Why is this important?

The upcoming changes bring several key benefits. Here are a few advantages:
1. Avoiding Probate: With a TOD designation, vehicles will be able to be passed directly to the designated beneficiary upon your death, bypassing the lengthy and sometimes costly probate process.
2. Simplicity and ase: By adding a TOD designation to the vehicle’s title, you’re making sure the transfer of ownership happens automatically upon your passing, with minimal paperwork and no need for complex legal procedures.
3. Control and Flexibility: You can still sell or transfer your vehicle while you’re alive. The TOD designation doesn’t take away your rights as the owner, so you retain full control of the vehicle until you pass away.
4. Reduced Family Conflict: By clearly designating who will inherit the vehicle, you make your wishes known and help prevent disputes among family members after your death.
5. Affordable: Adding a TOD designation to your vehicle’s title will be an affordable way to ensure your vehicle is passed on according to your wishes. The DMV’s fee for adding a TOD will be $15.

In short, the ability to add a TOD designation to vehicle titles will provide another option for passing vehicles at death while avoiding the hassle of probate, which can save your loved one’s time, money and potential stress.

For more guidance on the best ways to protect your assets to work and avoid probate, it’s crucial to seek the professional guidance of an elder law attorney, who can help ensure that all your estate planning documents are properly structured and in compliance with the law, safeguarding your wishes and minimizing potential complications for your heirs.

For educational purposes only. This is not legal advice. Lisa Hostetler Brown is a Certified Elder Law Attorney certified by the National Elder Law Foundation. 10 Pinckney Colony Rd, Ste 400, Bluffton, 843-757-5294 | HiltonHeadElderLaw.com