How to Designate a Beneficiary For a Motor Vehicle

Beneficiary Designation For A Motor Vehicle

On September 1st, 2015, The Texas State Legislature passed a law allowing for the transfer on death designation of a motor vehicle.

To do this, you will need to complete the form for Beneficiary Designation for a Motor Vehicle. This document is called VTR-121 and can be found online here.

Because this law was passed at the same time as the Transfer on Death Deed, many people often search for the VTR-121 form under the name “Transfer on Death Title.” There is also another document you can use to transfer ownership of a vehicle under rights of survivorship laws. This document is Texas Form VTR-122, which can be accessed here.

If you have a joint owner on the vehicle, such as a spouse, you will need this document to transfer ownership. This new law is codified under Texas Estate Code chapter 115. We list some of the important details of this law below:

  • Forms are revocable
  • A trust can be considered a beneficiary
  • It is a non-testamentary instrument
  • A Last Will and Testament will not revoke a beneficiary designation
  • Under chapter 240 of the Texas Property Code, a beneficiary can disclaim this inheritance
  • A spouse will have to agree to the transfer of a non-spouse
  • A beneficiary must survive 120 hours in order to be eligible to inherit
  • Creditor claims are still attached to property that has been transferred to a beneficiary

The two forms we discussed above are both simple estate planning tools that can help you properly structure your estate plan.

Speak with a Probate Attorney in McKinney

Do you need help determining what you need to have covered in your estate plan? At Willingham & Galvan, we are committed to helping clients in McKinney and surrounding areas protect their finances and family’s future. We can review your situation and develop a strong estate plan that will ensure your beneficiaries are able to secure what you pass on to them.

Call (214) 499-9647 to schedule a confidential appointment with our McKinney probate lawyers and learn more about beneficiary designation for a motor vehicle.