How to Transfer Your Car Into a Trust

Why you might move a car into a trust

Moving a car into a trust means changing the title so the trust owns the vehicle instead of you personally. The main reason people do this is to avoid probate — the court process that transfers property after death. If your car is in a trust, it passes to whoever you named in the trust document without going through probate, which saves time and money for your heirs.

A trust also lets you name someone to manage the car if you become unable to do so yourself. That person, called a trustee, can sell it, maintain it, or transfer it on your behalf. This is different from a will, which only takes effect after you die and only after probate is finished.

You can move a car into a trust at any time — when you first buy it, years later, or as part of organizing your estate. The process is straightforward but requires paperwork with your state's Department of Motor Vehicles.

Key Takeaways

• You will need a signed trust document that names you as the trustee and says the trust owns the vehicle.
• The South Carolina DMV requires a new title application, a completed form, and proof that the trust exists — usually a certified copy of the trust document.
• You keep the same registration and insurance; only the ownership name on the title changes.
• The process takes a few weeks and costs less than $100 in most cases, though fees vary by county.
• If you have a loan on the car, the lender must agree to the transfer, and some lenders will not allow it.

What you need before you start

First, you must have a trust document that is already signed and notarized. The trust should name you as the trustee (the person managing it) and should say that the trust owns property. If you do not have a trust yet, you will need to create one before you can move the car into it. You can work with an attorney, use an online service, or download a template — the cost ranges widely depending on the route you choose.

Second, check whether you have a loan on the car. If you do, contact the lender — the bank, credit union, or finance company — and ask whether they allow the title to be transferred into a trust. Some lenders will not permit this because they want the borrower's name on the title as security. If your lender refuses, you may need to pay off the loan before transferring the title, or you may need to keep the car in your personal name.

Third, gather your current car title, your driver's license, and a certified copy of the trust document. You can request a certified copy from the attorney who drafted the trust, or from the courthouse if the trust was filed there. Some counties require a certified copy; others accept a photocopy with your signature. Call your local DMV office to ask what they need.

The steps to transfer the title

Contact your county's DMV office and ask for the form to transfer a vehicle title into a trust. In South Carolina, this is usually Form SCDMV 400 (Application for Certificate of Title). Ask the office whether they need a certified copy of the trust or a photocopy, and whether they need any other paperwork specific to your county.

Complete the form with your name as the current owner and the trust name as the new owner. For example, if your trust is called "The Smith Family Trust," the new owner line should read "The Smith Family Trust." Include the trust's date and your role as trustee. Sign the form in front of a notary public — most banks, law offices, and shipping stores offer notary services for a small fee.

Submit the completed form, your current title, a copy of the trust document, and your driver's license to your county DMV office. You can mail these documents or deliver them in person. Include a check or money order for the title transfer fee, which varies by county but is usually between $25 and $75. Ask the DMV office whether they accept credit cards or online payment.

The DMV will process your request and mail you a new title showing the trust as the owner. This usually takes two to four weeks. During this time, you can continue to drive the car and use your current registration and insurance.

What happens to insurance and registration

Your car insurance does not change. You keep the same policy and the same coverage. When you renew your policy, you can tell the insurance company that the title is now in the trust's name, but this is not required — the car is still the same vehicle and you are still driving it.

Your vehicle registration also does not change automatically. When your registration expires and you renew it, you can update it to show the trust as the owner, or you can leave it in your personal name. Some people keep the registration in their personal name for simplicity, since they are the trustee and they are the one driving the car. Ask your DMV office what they recommend.

If you have a loan on the car

Before you transfer the title, contact your lender in writing and ask for permission. Explain that you want to move the car into a trust for estate planning purposes and ask whether they allow this. Some lenders will say yes with no conditions. Others will require that the lender's name remain on the title as a lienholder — meaning the lender's interest in the car is still protected even though the trust owns it.

If your lender refuses to allow the transfer, you have two options. You can pay off the loan and then transfer the title to the trust. Or you can keep the car in your personal name and use your will to say what happens to it after you die — this means it will go through probate, but the car will still pass to your heirs.

Do not transfer the title without the lender's permission. If you do, the lender may call the loan due immediately, or may refuse to release the lien when you try to sell the car later.

What happens after the transfer is complete

Once the new title arrives, the trust owns the car. You, as the trustee, have the legal right to manage it, drive it, sell it, or transfer it. If you become unable to manage your own affairs, the successor trustee you named in the trust document can take over managing the car without going to court.

When you die, the car passes to whoever you named as the beneficiary in the trust — again, without probate. The beneficiary or the successor trustee can transfer the title to the beneficiary's name, sell the car, or keep it in the trust, depending on what the trust document says.

If you change your mind and want to move the car back into your personal name, you can do so by filling out another title transfer form and paying another fee. The process is the same as moving it into the trust.

Frequently Asked Questions

Do I need an attorney to move my car into a trust?

No. You can do this yourself if you already have a trust document. However, if you do not have a trust yet, an attorney can help you create one that covers not just the car but your other property as well. Many people find this worth the cost.

Will moving my car into a trust affect my insurance rates?

No. Your insurance company insures the car, not the owner's name on the title. Your rates should not change. When you renew your policy, mention the change if you want to, but it is not required.

Can I move a car into a trust if I still owe money on it?

Only if your lender agrees. Contact the lender first and ask. If they refuse, you can pay off the loan before transferring the title, or keep the car in your personal name and use your will instead.

What if I want to sell the car after it is in the trust?

As the trustee, you can sell it just as you would if you owned it personally. You will need to sign the title as trustee and provide the buyer with a bill of sale. The buyer will then transfer the title into their own name.

How much does it cost to move a car into a trust?

The DMV fee is usually between $25 and $75, depending on your county. You may also pay a notary fee of $5 to $15 to have your signature notarized. If you hire an attorney to create or review the trust, that cost varies widely.