How To Gift Car Title To Family Member In Tennessee?

Are you planning to gift your car title to a family member in Tennessee? It’s a thoughtful gesture, but the process can be a bit tricky. Don’t worry, we’ve got you covered. In this article, we’ll guide you through the steps you need to take to gift your car title to your loved one in Tennessee. So, let’s get started!

If you want to gift a car title to a family member in Tennessee, you’ll need to follow a few steps. First, make sure you have the original title with no lienholders. Then, fill out the “Assignment of Title” section on the back of the title, including the recipient’s name and address. You’ll also need to fill out the “gift” section and provide a signature. Finally, the recipient will need to take the title to the county clerk’s office to transfer ownership and pay any applicable fees.

How to Gift Car Title to Family Member in Tennessee?

Giving a car as a gift to a family member can be a great way to show your love and appreciation. However, there are a few things you need to consider before you can gift a car title to a family member in Tennessee. Here’s a step-by-step guide to help you through the process.

1. Determine the Value of the Car

Before you can gift a car to a family member, you need to know its value. You can use resources such as Kelley Blue Book or NADA Guides to determine the value of the car. Once you know the value, you can decide on how much you want to gift the car to your family member.

2. Check the Car Title

Before you gift the car, you need to ensure that the car title is in your name. If it is not, you will need to transfer the title to your name before you can gift it to your family member.

3. Complete the Gift Form

To gift a car to a family member in Tennessee, you need to complete a gift form. The form is available on the Tennessee Department of Revenue website. You will need to fill out the form and have it notarized.

4. Provide Proof of Insurance

You will need to provide proof of insurance for the car you are gifting to your family member. You can either transfer your insurance policy to your family member or have them purchase their own policy.

5. Pay the Gift Tax

In Tennessee, you will need to pay a gift tax when you gift a car to a family member. The amount of tax you will need to pay depends on the value of the car. You can use the Tennessee Department of Revenue website to calculate the amount of tax you will need to pay.

6. Complete the Title Transfer

After you have completed the gift form and paid the gift tax, you will need to transfer the car title to your family member. You can do this by completing the appropriate sections on the title and signing it over to your family member.

7. Obtain a New Title

Your family member will need to obtain a new title in their name after you have gifted them the car. They can do this by taking the signed title and the gift form to their local county clerk’s office.

8. Register the Car

Your family member will also need to register the car in their name. They can do this by taking the new title, proof of insurance, and payment for registration fees to their local county clerk’s office.

9. Understand the Benefits of Gifting a Car

Gifting a car to a family member in Tennessee can come with several benefits. For example, it can help your family member save money on the purchase of a new car. Additionally, it can help you avoid paying taxes on the sale of the vehicle.

10. Know the Difference Between Gifting and Selling a Car

When you gift a car to a family member, you are not selling it to them. Instead, you are transferring ownership of the car as a gift. This can have tax implications, so it’s important to understand the difference between gifting and selling a car.

In conclusion, gifting a car to a family member in Tennessee can be a great way to show your love and appreciation. However, there are a few important steps you need to follow to ensure the process goes smoothly. By following the steps outlined in this guide, you can gift a car to your family member with ease.

Frequently Asked Questions

Here are some commonly asked questions regarding gifting a car title to a family member in Tennessee:

What is the process for gifting a car title to a family member in Tennessee?

The process for gifting a car title to a family member in Tennessee is relatively simple. The person gifting the car must sign the title over to the recipient as a gift. The recipient must then take the title to the county clerk’s office to transfer ownership and register the car.

It is important to note that if there is a lien on the car, the lienholder must first be notified and may need to sign off on the transfer of ownership before the recipient can register the car.

What documents do I need to gift a car title to a family member in Tennessee?

When gifting a car title to a family member in Tennessee, you will need to sign over the title as a gift. You will also need to provide a notarized statement that the transfer of ownership is a gift and that no money was exchanged for the car.

If there is a lien on the car, you will also need to provide a lien release form from the lienholder. Additionally, the recipient will need to bring a copy of their driver’s license and proof of insurance when registering the car.

Is there a gift tax on gifting a car title to a family member in Tennessee?

No, there is no gift tax on gifting a car title to a family member in Tennessee. However, it is important to note that if the car is sold by the recipient at a later date, they may be responsible for paying taxes on the sale if they make a profit.

It is also important to keep in mind that if the value of the car is over a certain amount, the giver may need to file a federal gift tax return. As of 2021, the annual gift tax exclusion is $15,000 per person.

Can I gift a car title to a non-family member in Tennessee?

Yes, you can gift a car title to a non-family member in Tennessee. The process is the same as gifting a car title to a family member, but there may be additional documentation required if the recipient is not a close relative.

If the recipient is not a Tennessee resident, they may also need to provide additional documentation to register the car in their home state. It is important to check with the local DMV or county clerk’s office for specific requirements.

What happens if I gift a car title to a family member without transferring ownership?

If you gift a car title to a family member without transferring ownership, you may still be held liable for any accidents or incidents involving the car. Additionally, the recipient may be unable to register the car or obtain insurance without proper ownership documentation.

It is important to transfer ownership of the car as soon as possible after gifting it to a family member to avoid any legal or financial complications.

Is it better to gift or sell a car to a family member

In conclusion, gifting a car title to a family member in Tennessee is a relatively straightforward process that requires a few important steps. First, ensure that the car is free from any liens or loans, and obtain the necessary paperwork from the Tennessee Department of Revenue. Next, complete the necessary forms, including the gift affidavit and the assignment of title, and submit them to the department along with any required fees.

It’s important to note that gifting a car title can have tax implications, so it’s always a good idea to consult with a tax professional before making any transfers. Additionally, it’s important to make sure that the person receiving the car is legally allowed to operate it and has the necessary insurance coverage.

Overall, gifting a car title to a family member in Tennessee can be a wonderful way to show your love and support. By following the necessary steps and seeking professional advice where needed, you can ensure a smooth and hassle-free transfer of ownership.