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.