What Happens If Two People Own a Car And One Dies in Vermont

When one of two owners listed on a Vermont vehicle title dies, ownership transfer depends on the form of joint ownership stated on the title and whether the surviving owner has automatic rights to the vehicle. The vehicle title registration system distinguishes between survivorship arrangements and non-survivorship arrangements, and the surviving owner or estate representative must update the title and registration to reflect the current legal owner.

Determine How the Names Appear on the Vermont Car Title

Vermont law requires that the title clearly identify the nature of ownership when a vehicle is registered to more than one person. According to Vermont Statute 23 V.S.A. § 2023, the certificate of title must designate ownership as one of five categories: tenants by the entirety, joint tenants, tenants in common, partners, or transfer on death. Each designation carries distinct legal implications regarding survivorship and the treatment of the deceased owner's interest.

If the Title Shows Survivorship Language

Vermont recognizes three forms of ownership that include automatic survivorship rights: tenants by the entirety (available only to married couples), joint tenants, and business partners who have established a right of survivorship. Under these arrangements, upon the death of one owner, the surviving owner's interest expands to include the deceased owner's share by operation of law, without the vehicle passing through the deceased owner's probate estate. The surviving owner automatically becomes the sole owner upon the death of the co-owner, provided a death certificate is submitted to the Vermont Department of Motor Vehicles.

Tenancy by the entirety is a form of ownership available exclusively to married couples, in which, as with joint tenancy, the right of survivorship is included; if one spouse dies, the surviving spouse becomes the sole owner without probate proceedings. Joint tenancy allows two or more co-owners to hold equal interests in the vehicle, with each owner's share passing automatically to the surviving co-owner(s) upon death. Partnerships established as business entities may also hold title with survivorship rights if the partnership agreement or the title designation indicates a right of survivorship

If the Title Does Not Show Survivorship Language

A title designating ownership as tenants in common means that each owner holds a separate, distinct share of the vehicle. A tenants-in-common arrangement includes no automatic right of survivorship. When an owner holding a tenancy in common interest dies, that person's share of the vehicle becomes part of their probate estate and passes according to their will or, if intestate, according to Vermont's intestate succession laws. Similarly, if the title does not specify the nature of ownership between multiple owners, Vermont law treats the arrangement as a tenancy in common, and the deceased owner's interest does not automatically pass to the surviving co-owner.

Vermont Car Title Rules After One Owner Dies

Vermont requires that title and registration records be updated to reflect the true legal owner or owners at all times. When one owner of a jointly titled vehicle dies, the surviving owner or the representative of the deceased owner's estate must take action to correct the title and registration. The procedures differ depending on whether the vehicle is titled with survivorship rights or as a tenancy in common and whether the deceased owner's estate is being probated.

If the vehicle is titled with survivorship language—whether as tenants by the entirety, joint tenants, or partners with survivorship—the deceased owner's name must be removed from the title and registration, and the surviving owner's name should appear as the sole owner. The surviving owner provides the death certificate to the Department of Motor Vehicles, and the title is corrected to show only the surviving owner.

If the vehicle is held as a tenancy in common or the nature of ownership is not specified on the title, the deceased owner's share remains part of the estate. In that case, the title must be corrected to show the new owner or owners as determined by the probate process or by court order. The correction must take place through the procedures outlined below, depending on whether the estate is being probated and whether a will exists.

Does a Car Go Through Probate in Vermont if One Owner Dies?

Whether a jointly titled vehicle must pass through probate after one owner dies depends on the title's form of ownership. If the title shows survivorship language—tenants by the entirety, joint tenants, or partners with survivorship—the vehicle interest passes directly to the surviving owner by operation of law and does not enter the deceased owner's probate estate. No probate court proceeding is necessary for the transfer.

If the vehicle is titled as a tenancy in common or the ownership designation is unclear, the deceased owner's share becomes part of the estate and is subject to probate if an estate proceeding is initiated. However, Vermont law provides alternatives to full probate for some estates. An estate representative may obtain a letter from a Probate Court officer stating that the estate does not require probate or that it is too small to probate, depending on the estate's size and nature. Additionally, if the deceased owner left a will that does not specifically address motor vehicles, the surviving spouse may qualify for a fee exemption and transfer the vehicle without full probate proceedings.

How To Transfer a Car Title in Vermont After a Co-Owner Dies

Title transfer following the death of a co-owner must be completed through the Vermont Department of Motor Vehicles. All applications and supporting documents are submitted to the DMV for processing. Depending on the form of ownership and whether the estate is being probated, the required documents and procedures vary.

General Process

The transfer process begins with reviewing the current title to determine whether the ownership is designated as tenants by the entirety, joint tenants, tenants in common, partners, or transfer on death. The existing certificate of title must be located, and if unavailable, a replacement title may be requested through the DMV.

Once the form of ownership is confirmed, the appropriate supporting documents—death certificate, probate court letter or appointment, or surviving spouse statement—are gathered. If the vehicle has a lienholder listed on the title, the lienholder must provide a lien release. If the deceased owner's share is being transferred to a new owner, the title must be properly assigned in Section 1 by the estate representative or surviving owner, as applicable.

The completed Vermont Motor Vehicle Registration, Tax, and Title Application (Form VD-119) and all supporting documents are submitted to the Department of Motor Vehicles with the appropriate fees. The DMV office reviews all materials and issues a new title reflecting the surviving owner or the new owner as determined by the estate process.

Applicable Fees

Vermont's title transfer fees for a motor vehicle title are applied when a certificate of title is issued following the death of a co-owner. The following table outlines the typical fees that apply:

Additionally, if the surviving owner was not previously registered as an owner and the registration has expired, a new registration must be issued. Vermont may also apply a purchase and use tax when a vehicle is transferred to a new owner, though certain transfers may be exempt from the tax.

Surviving Spouse

Vermont law provides a significant exception to standard title and registration fees for a surviving spouse under specific circumstances. This exception is codified in 23 V.S.A. § 2023 and applies to a maximum of two motor vehicles. The surviving spouse may have the vehicle registration and title transferred to his or her name at no cost if the deceased spouse died intestate (without a will) or if the spouse's will or testamentary document does not specifically direct the disposition of motor vehicles to any person other than the surviving spouse.

To qualify for this fee waiver, the surviving spouse must submit the Vermont Motor Vehicle Registration, Tax, and Title Application (Form VD-119), a copy of the death certificate, and the Surviving Spouse Statement. The Surviving Spouse Statement is a certification, made under penalty of perjury, that the deceased spouse died intestate or left a will that does not dispose of the vehicle to anyone other than the survivor, and that the applicant was the legal spouse at the time of death. No title or registration fees, and no purchase and use tax, are assessed in this situation. However, this exception does not apply if the vehicle is titled in the name of persons other than the deceased spouse and the surviving spouse (for example, if it is co-owned by the deceased, the surviving spouse, and an adult child).

Documents Needed to Transfer a Vermont Car Title After Death

The specific documents required depend on the vehicle's title, whether the estate is being probated, and whether the deceased owner left a will. In all cases, a death certificate is required, and the nature of ownership on the title and the estate's probate status determine which additional documentation must be submitted.

Common Documents

The documents most frequently required for a title transfer following the death of a co-owner include the following:

• A certified copy of the death certificate identifying the deceased owner
• The original certificate of title, properly assigned or transferred as applicable
• If applicable, a completed Surviving Spouse Statement (as part of form VT-021) if the surviving spouse qualifies for the fee exemption
• If applicable, a letter from a Probate Court officer (such as a Probate Judge or Court Clerk) stating that the deceased died intestate, there is no estate to be probated or the estate need not be probated, and naming the person with rights of ownership to the vehicle (required when the estate is not being probated but the vehicle is not titled with survivorship rights or is tenancy in common)
• If applicable, a letter from the Probate Judge naming the Administrator of the estate (required when the deceased died intestate and the estate is being probated with no will)
• If applicable, a letter from Probate Court showing proof of appointment of the Executor of the will (required when the deceased died testate and the estate is being probated)
• The completed Vermont Motor Vehicle Registration, Tax, and Title Application (Form VD-119)
• If the vehicle has a lienholder, a lien release completed and signed by the lienholder

For vehicles titled with survivorship rights (tenants by the entirety or joint tenants), only the death certificate and the title are required. For vehicles held as tenants in common or with no survivorship language specified, and the estate is being probated, the Administrator or Executor must sign the title assignment in Section 1 of the title, along with any other surviving co-owners.

For vehicles transferred to a new owner through probate proceedings, the title must be properly assigned with signatures from the estate representative and any other surviving co-owners, and, if applicable, the lienholder's release must be obtained.

What if There Is a Loan on the Car?

If a financial institution or lender holds a security interest in the vehicle, the lienholder's name appears on the Vermont title. When the title must be transferred or corrected following the death of a co-owner, the lien must be addressed. If the loan is to be paid off as part of the estate settlement, the lienholder must provide a lien release confirming that the debt has been satisfied. The lienholder completes the lien release and submits it with the title application so that the new title reflects no lien.

If the loan remains outstanding and will continue to be owed by the surviving owner or the estate, the lienholder's information on the title application must match exactly the information shown on the current title. Both the surviving owner or estate representative and the lienholder should present all title and lien-related documents to the DMV office together so that the ownership change and the lien information can be reviewed and updated simultaneously. The lienholder will retain the new title until the loan is fully paid off, at which point a lien release may be requested and a corrected title issued to the owner.

Contact Information

Vermont Department of Motor Vehicles
120 State Street, Montpelier, Vermont 05603-0001
Phone: (802) 828-2000
Official Website: Department of Motor Vehicles