Is a title transfer required when giving a vehicle as a gift?

Gift, Gifts and Gifting

Yes, a title transfer is required when giving used cars as gifts. All states have different title transfer requirements, but you'll find gifting is similar to any other car title exchange. Depending on your state, the seller (or giver in this case) will be required to write the word "GIFT" as the sales amount on either the title or a bill of sale. The word "GIFT" exempts the buyer (or the receiver) from sales tax. 

Some states, like Maryland for example, have strict gift title regulations. Gifting can only take place between family members. And if last names do not match, proof of family ties must be provided. For the exact gifting requirements in your state, contact your local DMV.

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