How do I handle a title transfer with a gift of car?

Requirements for gift of car vary with each state. The process is very similar to a regular title transfer, but with slight variations. Some states require writing the word "GIFT" as the price on the title or on a bill of sale. Others mandate submitting specific forms. Texas, for example, requires, in addition to all other requirements, completing an Affidavit of Motor Vehicle Gift Transfer.

Besides the obvious reasons for transferring the car's title, following the gift of car requirements financially benefits the new owner. Confirming that the vehicle was a gift and no money was exchanged shields the new owner from sales tax fees.   

You can find gift title transfer information on your state's DMV Web site, detailing required signatures, forms and fees.

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