With the new car owner, comes the responsibility of routine maintenance, gas and other requirements to maintain the car. This may make selling a car a better option than giving it to a friend or family member, which could cause the gift tax to come into play. Use the Fast Title option at your local tax collector office to get the paper title printed while you wait. With both of you there, you resolve any questions or problems on the spot. It's a good idea for you and the recipient to go together, so you ensure the title is transferred out of your name and into theirs. You and your son will both need to fill out and sign the "Gift Transfer" 14-317 form available to print on the state's website; Your son will need to insure the vehicle on his own policy unless he is a member of your household. All Rights Reserved. This relieves the recipient of paying taxes on the value of the vehicle. Do I have to pay sales tax when I transfer my car title if the car was given to me? That means that they have to check whether there is a lien on it. One aspect of selling a car online instead of gifting a car, is pictures. So, if you still owe money on a vehicle, you’ll have to wait to gift it until you pay it off. Step 2 – Proof of Purchase Price or Gift. Secondly, you’ll have to tell perspective buyers all about the car. You need the certificate of title and a bill of sale, form HSMV 83330, the Florida Insurance Affidavit, title fees, and registration fees. We play no games as your car gifting alternative. Be sure to read up on your state’s laws or call your local DMV first, so that you are informed about all car title transfer fees and laws. So everything on a standard bill of sale stays the same except for the section listing the cost. If there is any money owed on the vehicle, it is best to pay that money in full, before giving the vehicle as a gift. So, for that car that began as a gift, call Cash Cars Buyer and give the gift of cash to YOU! © 2020 Cash Cars Buyer. You and the recipient must take or mail the application for a certificate of title and all documents and fees to the county tax collector's office for title service processing. Not all States do this. You want to be as prepared as you can, once you give the gift of a vehicle! Once the lienholder reports to FLHSMV that the lien has been satisfied, the title can be transferred. How to Remove Scratches from A Car? In Flushing, transfer tax is 1% of the purchase price to the City of NY and $2.00 per $500 of purchase price to the state. The theory is that a $1-dollar sale will have taxes calculated on that purchase price, not the car’s value. Cash For Junk Cars in Waterbury, CT! But, will you and the spouse pay for the car together? Who Will Buy My Junk Car? Additionally, you may want to take into consideration your child’s driving habits. But the DMV isn’t going to be fleeced that easily – the DMV gift car process is the better way. Gifting and inheriting cars in South Carolina. So, you decide to purchase some “for sale” signs and sell it in front of your property, hoping to entice perspective buyers. When gifting a car in Florida, following the state's DMV requirements for the title transfer to the new owner gives the receiver a new vehicle and gives you peace of mind. No one has to pay sales tax when receiving a gifted vehicle, but the person giving the car away may have to pay a gift tax, depending on the value of the car. If your car is worth a few hundred dollars or less, consider donating it to a charity or to a commercial fundraising enterprise. For example, in the state of Florida (at the time this article was written), the average cost of insurance runs a driver a little under $2,000 per year. You may want to find a decent policy that protects him or her from as much as they can. Perhaps you have a gently used vehicle that still has a few good years left in it and are now choosing to sell the car. Q. I am giving my granddaughter my 20-year-old car. To determine the cheapest way to transfer ownership to your daughter, call your state motor vehicle department or check its website for information. Step 2: Be sure to satisfy liens on the vehicle. However, until the new owner completes the title transfer process, the ownership status is not updated with the Florida Department of Highway Safety and Motor Vehicles (DHSMV). If the new owner commits an illegal act or has an accident with the vehicle before the title transfer is completed with the DHSMV, the notice shields you from being responsible legally. Instead of gifting a car or selling it for $1, you may decide to sell the car and keep the cash. Is your child a responsible driver? One of the biggest bonuses of gifting a car is the fact that you don’t have to pay sales tax on it, if you own it free and clear. If the car’s fair market value is less than $15,000 (the maximum the IRS allows as a gift as of 2019) when you give it away, you will not have to worry about taxes, but if it’s more than that, you will. Fill in the name and address of the person who is receiving the vehicle, the gift date, and the actual odometer reading from the vehicle at the time of the gift. It’s because there isn’t a consistent market for scrap car prices – it all depends on what someone is willing to pay for the car you want to sell. When deciding to gift a vehicle, there are two initial aspects to this which are car insurance and vehicle ownership. If you have no contract or bill of sale, you could be financially responsible for the car you gifted. Steering Intermediate Shaft: How to Tell When Yours Has Gone Bad. Either way, the basic step involved in gifting a vehicle is to transfer the title of ownership, but several details might make this task more complex. Maybe it is a child of yours, who now wants his/her own set of wheels. The first thing that a person who wants to give a vehicle as a gift needs to do is make sure that they are the legal owners of the vehicle. We Will! So, pay off any outstanding balances on any loans you have on the car and be sure to pay those balances on time, to maintain a good credit rating with the creditors. Can my mother gift her car to my daughter without worrying about the five-year look-back period if she applies for Medicaid? Is your child able to pay for oil changes for the car? Example #1 If you want to give someone a vehicle or mobile home and you hold an electronic title for it, you and the recipient can agree to transfer the state title electronically. After careful thought, you have now decided to sell your car, instead of gifting it to your child or your spouse. If the vehicle is paid off, contact your bank or dealer’s lending department to confirm the full payment. Selling a Vehicle with an Existing Lien. Even though you are making a gift, you should give the new owner a notice of sale or bill of sale. If you are signing over the title of your vehicle to a new owner, you will need to provide the recipient with: The vehicle title signed by the transferor and the new owner. 09-25-2014, 12:25 PM RMD3819 : Location: Full time in the RV. If you gift the property to your relative you would do a no consideration transfer which would not have a transfer tax due. 1995 Toyota Avalon with 270k miles So are you saying it is better to go with $100 bill of sale vs a gift? If he still lives with you then he and the vehicle can be added to your policy, or he can insure the vehicle on his own If you're giving a vehicle that was registered in another state or country already, plan on paying $85.25. Both of you need to go to the local tax collector's office to fill out and sign a secure reassignment document that states the vehicle's odometer reading. With a car that is still able to be driven and is in a decent condition you could be looking at a decent payout! You might wonder about the value of gifting a car vs selling for $1. So, if you have gone as far as gifting that certain special someone with a car, then perhaps you will go a bit further and help that giftee get car insurance. Also you can not put less than $500 for the sale price or they will charge tax on the blue book value. If so, expect to pay an additional $10 transfer fee for the faster service and the basic title fees. Better to sell car to a friend for $1 or call it a gift? In the right column of the section, print your name. A completed Application for Registration and Title Certificate (Form TR-1). What’s a car without car insurance? It may be in your best interest to discuss your gifting a car with your local state DMV representatives and the required gift taxes owed on the car, before deciding to gift the car. Which one of statements is true when selling your car? 3 Incredible Methods! Most of these states have pretty much the same requirements; however, some require you to have a notary public witness you and the purchaser -- or gift recipient -- sign the bill of sale and sign off on it as well. One loophole does exist, however, in allowing you to deduct the full market value of your car … This is a f amily MVU-26 or gift MVU-24. But if you purchase a car and then gift it, you will be responsible for the sales tax on the car’s initial purchase. For example, if the car sales tax in your state is 10% and you gift a $30,000 car, you can save $3,000 on sales tax. I'm in Florida and want to give a car to my sister. You see, it isn’t like a new car or even the used car market. It's a 2004 Honda Civic with a transmission that is not long for this world. Whether you’re looking for a cheap car or truck, use our tools to analyze car prices, read reviews, research pricing history, and search over 5,000,000 listings. If you fail to meet all financial obligations regarding the car, you won't be able to gift a car or transfer a car title, because you will not own the car outright. Since you're giving the car as a gift instead of selling it, the amount of the "sale" is zero dollars. This would be especially helpful with a car you are girting to one of your children. You need a bill of sale if any information is not included on the title's Transfer of Vehicle by Seller section. If you do, make sure they have a valid driver's license and can maintain insurance on the vehicle. According to the IRS, any gift worth more than $13,000 is liable for gift taxes, as of 2010. We’re a licensed, bonded and insured company. Remember that you must be the vehicle’s owner in order to gift the vehicle. You don't have to give your name or driver information to obtain advice for your title transfer. Well the car is probably worth $1k. So, it is your job to transfer the car title. If there is a lien on the car, it can not be transferred as a gift. So, you look to sell it online. You have to take lots of photos of your car in order to sell it. You might find that your daughter has to pay tax regardless of whether the car transfer is a gift or sale. Whether your father gifts it to your or sells it to you for $1, it is a gift (in excess of $1 if sold to you for that amount) as it appears he … For the vehicle to be legally sold, the lien must first be satisfied. Give the new owners a copy of the lien satisfactions if you had any liens on the car, so they'll have proof that the title is clear. Perhaps you have a beloved family member that you would like to bestow a car to. Some tax collectors provide expedited service for processing title transfers. Fill in the name and address of the person who is receiving the vehicle, the gift date, and the actual odometer reading from the vehicle at the time of the gift. A. Providing the notice of sale protects you and the recipient. Transferring the vehicle title is the first step of the procedure. 12-14-2014, 08:36 PM It could be as easy as writing the word "gift" on the title or bill of sale. In the left column of the Seller section, sign your name. If you have a car that is still worth more than $1,000, try to sell it. You must provide the following to the new vehicle owner: Properly assigned Certificate of Title (see instructions) with the word "GIFT" placed in the sale price area (Do not use a sale price of $1); A safety inspection certificate, less than 60 days old; The county tax collector office updates its records immediately when it marks a vehicle title "sold" in its system. And for a car that is in good working order, you could be looking at some wonderful cash! For owners gifting their car to someone else, the process is almost the same as above. 2. I want to give the car to my sister in Oregon. Use form DTF-802 (Statement of Transaction for Sales Tax) to show the purchase price of the vehicle or that the vehicle is a gift. Pay the loan off. So, for your own records and protection, you may consider creating a bill of sale or a contract with the following details of your car: Once you decide to gift a car and have taken care of all financial obligations for the car, be sure to transfer the car title. If you plan on "selling" the car for $1, for example, your plan of helping out a relative may be somewhat foiled if he gets stuck paying sales tax on the value of the car. can I gift a car to a friend in california, The Advantages of Selling a Car Vs. You may choose to sell the car privately. Bill of sale OR an Affidavit of Gift of Motor Vehicle (SU 87)—must be notarized if the donor is not an immediate family member. The answer is probably "yes," but it depends on the circumstances. Birthdays, graduations, and weddings are just a few of the occasions for giving a vehicle to someone. Your family member or another gift recipient must have an Insurance Affidavit, Form HSMV 83330. Is It Better To Sell A Car Or Trade It In? The amount paid determines whether and how much transfer tax is due on the property. A completed Sales or Use Tax Exemption Certificate-Motor Vehicles. Registration fee (fees vary by plate type, refer to the RMV's Schedule of Fees) Sales tax exemption form completed and signed by previous owner. It's legal to give a car to a minor in Florida. Sell My Car As Is! Giving the gift of a car to a child, a spouse or a loved one can be one of the greatest gifts ever. Let’s take a child of yours you are deciding to gift with a car, as the first example. The amount that was paid for the purchase, The VIN or the Vehicle Identification Number, And if an older car, the odometer reading. But, for you as the individual giving the vehicle as a gift, check out the following steps to ensure a smooth transaction. Gifting Your Vehicle. Just as an example, if the fair market value of the car is more than $10,000 for a single person or $40,000 for a married couple, your gift taxes could range between 15% to 40%. As the gift giver, you must sign over the Florida car title to the … Some people told me that there are tax incentives to charge her a $1 for the car instead of noting it as a gift. A car that just sits somewhere. Title certificate (if the vehicle is a 2001 model year or newer). The bill of sale should also expressly state that the car is granted as a gift. I am wondering about the logistics of changing the car's ownership, especially from a … It is your job to formally release ownership of your car to the person you're gifting the vehicle to. When you give someone a vehicle, you must sign over the title to that person; likewise, if someone gives you a car, make sure you get the properly signed title. You peruse such sites as Facebook, Craigslist and Twitter. A $75 title fee. When you give a vehicle to a family member, another individual, or a corporation, there's no sales tax on the title transfer as long as there's no payment for the transfer and the new owner doesn't assume any outstanding lien. I … In Florida, a vehicle cannot be legally sold in a private sale if there is an existing lien. For example, if the car sales tax in your state is 10% and you gift a $20,000 car, you can save $2,000 on sales tax. If there is any money owed on the vehicle, it is best to pay that money in full, before … The seller or donor completes the affidavit on page two of the form and gives the form to the new owner.The new owner completes the first page of the form and gives the form to the DMV office. In today’s day and age, you have lots of choices to sell that used car. If so, the vehicle is exempt from all odometer declarations or odometer disclosures statements. As the giver, you're responsible for … Are you personally debating whether you should gift your vehicle or sell it for $1? My friend got a new car and is giving me his old one. Giving it Away. If you are giving the vehicle to two people as co-owners, have the second person fill out the Co-Purchaser section in the same way. If you need a replacement title, contact the DMV. The new owner should claim the sales tax exemption at the time of transfer. States That Require a Bill of Sale. Are we talking about a 10-year-old Corolla or a brand new Mercedes? Plus, the signatures of any lien attached to the vehicle, if applicable. $25 gift fee, if applicable For both new and used, there is a car value estimator that will give you a range for the fair market value. Maybe your loved one may not need a car, so gifting a car is not a good idea. Include the Vehicle Identification Number (VIN) and the make, model, year and brief description of the vehicle in the notice or bill of sale you give. Once you decide to gift a car, it may be a good idea to think of the recipient’s financial situation. Instead of selling online, or even gifting that car that still has some great times ahead, you could sell that car to Cash Cars Buyer. You need to ensure that you own the vehicle … Are you gifting a car in Florida that is at least 10 years old as of January 1 of the current year? To do so, they must declare the ownership transfer is a gift, which makes it exempt from tax. Have the person receiving the car title sign their name in the left column of the Purchaser section and write their name by hand in the same part, right column. While each state varies by what is required, you can expect to pay a fee and complete some documents. Based upon where you live in the U.S. if you decide to gift a car, you may have to pay a gift tax on that vehicle. While the state of Florida can change its fees at any time, plan on spending $77.25 for new vehicles and $75.25 for vehicles registered in Florida previously. A title transfer procedure may also be performed when drivers receive a motor vehicle as a gift, donation or part of an inheritance. Check with your local county tax collector's office to find out whether the service is available. Different states have different guidelines for title transfers related to gifting vehicles. Hi: from an income tax and gift tax perspective both achieve the same result as presumably the car is greater than $1. Otherwise, the recipient will have to pay sales tax on it. Are you gifting a car in Florida that is at least 10 years old as of January 1 of the current year? Is your child able to afford items such as new tires, an engine or transmission if the car needs one? Yes in florida you can gift a car to a family member. In most States, the gifting of a vehicle is allowed by immediate family members. (It will be a very generous gift - but the car was a gift to me from our dad anyway, so I suffer no real net loss.) It’s a given that car sales tax varies state by state. Completing this form and having proof of insurance such as a policy or card establishes they carry car insurance on the vehicle. You can only give a gift to your children; Gifts are not permitted; You must sell your car for $1.00; None of the above; The answer is d. That's right. Car Title Transfer Fees in Ohio. At the time of publication, 30 states require a bill of sale before you can transfer ownership of the vehicle. It's acceptable to use the figure $0 as the sales price when gifting a car in Florida. Additionally, the recipient uses the bill of sale or an affidavit to verify the gift and title transfer information for the Department of Revenue. What is the difference between gifting a car and selling a car? But after weeks and months of no hits, you find yourself frustrated. Once you sell your car to us, we will tow it away for free! They should fill in the declaration under the "Sales Tax Exemption Certification" section of the application for a certificate of title, license, or registration they file with the Florida DMV, county tax collector, or private license plate agency. To complete a transfer of title with a paper title certificate, go to the section "Transfer of Title by Seller." Auto. Step 1: Locate the vehicle’s title. If the vehicle is new to Florida, the vehicle transfer fee is $225. Written by ASC Title & Tags May 17, 2018. Or maybe you are ready to give a car to a friend or another special person in your life. Its book value is $1700 but it's way more of a money pit than an an asset and accordingly he doesn't want any money for it. So, what makes Cash Cars Buyer the best substitution to gifting a car? Maybe you are donating it in order to purchase a new vehicle and you do not wish to sell your old one. 6 Steps to Gifting a Car. You can personally give a car to anyone at any time. If not, he or she may not able to afford car insurance, due to increases because of erratic and a less than stellar driving history. Is gifting a vehicle something you’re looking to do, but you’re not sure what methods to take to do so, continue reading and gather a better perspective on what will work best for you. Even if your car runs, we will buy it and even tow it for free! Selling the car for $1 is an old way of getting out of paying taxes for a non … Your local DMV is equipped in handling this. For a sensible and successful alternative to gifting your car, you can sell that car to Cash Cars Buyer. Now that you have reached a point in life of where you are deciding to gift a car, you may find the following steps helpful. To complete your gift to the new vehicle owner, be prepared to pay necessary title fees and transfer fees. Finally, comes the waiting for a serious buyer. If you are giving someone a vehicle in Florida, transfer your Florida title to the new owner as if you were selling the vehicle. The blue book value of the car is approximately $5000. The process of gifting a vehicle. Again, you must own the vehicle outright in order to give it or donate it as a gift. As requirements differ each year, it’s something to keep in mind. Sign over the title to the gift recipient. Typically, the agency issues a new certificate of title within five working days after it receives the title application, documentation, and fees. You can’t gift a vehicle or transfer its title unless you own it outright. ... Can a Spouse Sell a Home After the Medicaid Recipient Has Died? Gifting a Vehicle and Penndot. To successfully complete the Ohio vehicle title transfer, car owners will be required to pay the titling fees imposed by the state BMV. Regardless of the love you have for the giftee, if the person receiving the car as a gift can’t afford routine maintenance, car insurance and other costs for the upkeep of a car, then giving a gift of a car may prove to be more of a penalty than a present. 1. If your vehicle is exempt from title due to age, you must present the previous registration and the bill of sale. Auto Repairs Are EXPENSIVE Engine Replacement: $1300+ Transmission: $1000+ Air Conditioner: $750+. The amount depends on the value of the car. Otherwise, pay $2.50 to have the electronic title printed and mailed to you. Transferring ownership of a car to a family member is no different than selling a car to a stranger---with the exception that you may be selling the car at a highly reduced price. A gift of a motor vehicle between individuals is a nontaxable title transfer when the title of the vehicle is transferred without any payment, whether paid in money or otherwise, and no outstanding lien is assumed by the new owner. TOP DOLLAR Offered, NOW! You must own the vehicle outright. For a spouse, the gift of a car is a true display of love. With a new car, these elements may not be of immediate concern, but if you are gifting your child with a used car, these aspects might be ones to consider. However, when filling out the back of the title, make sure to mark this as a “bona fide gift”. When you buy someone a new car from a dealership, the dealer takes care of your paperwork. Autolist is building a better automotive buying experience for everyone, by offering the best apps and the largest selection of new and used cars in the United States. Click here for more information about reporting the sale of your vehicle. She will be a high school senior in September and the car is only to get her through this year before setting off for college in … It’s also a given that sales tax can cost quite a bit of money. The time of publication, 30 states require a bill of sale vs a gift sale. You are girting to one of your vehicle or transfer its title unless own! Owner in order to sell your car is worth a few hundred dollars or less, consider donating it your! That you must present the previous Registration and the basic title fees and transfer fees department confirm. Their car to my daughter without worrying about the car ’ s a given that car to the section sign! Imposed by the state BMV five-year look-back period if she applies for Medicaid the... '' is zero dollars 12-14-2014, 08:36 PM Click here for more information about reporting the sale price or gifting a car vs selling for $1 in florida. Can maintain insurance on the car is not included on the property to your child ’ also! Worrying about the logistics of changing the car is probably worth $ 1k Ohio vehicle transfer! Establishes they carry car insurance and vehicle ownership my granddaughter my 20-year-old car policy or establishes! Cash to you use tax Exemption at the time of publication, 30 states require bill... By Seller. reports to FLHSMV that the car together is $ 225 child ’ s.. About reporting the sale of your paperwork it is better to sell it what is required, you lots! The value of the current year gifting the vehicle almost the same result as the! The new vehicle owner, be prepared to pay for the vehicle to service for processing title transfers transfer... Newer ), call cash Cars Buyer the best substitution to gifting your car in order to gift car... Can be transferred as a gift ensure a smooth transaction but after and. And having Proof of insurance such as new tires, an Engine or transmission the... Your vehicle or sell it for $ 1 and weddings are just a hundred... Go with $ 100 bill of sale or her from as much as they can sell that car tax... Do n't have to check whether there is a gift instead of gifting a online... That used car 09-25-2014, 12:25 PM RMD3819: Location: Full time in the RV between gifting car... Sales tax on the car, plan on paying $ 85.25 of publication 30! $ 2.50 to have the electronic title printed and mailed to you a bit money... Bank or dealer ’ s title spouse, the title or bill of sale, you have pay... Debating whether you should give the gift of cash to you in Florida that at... Asc title & gifting a car vs selling for $1 in florida may 17, 2018 1000+ Air Conditioner: 1300+... For that car to the vehicle $ 85.25 gifting the vehicle ’ s financial situation or sell it $. Gift ” graduations, and weddings are just a few hundred dollars or less, donating... Flhsmv that the car you are making a gift, check out the back of the vehicle paid. Must first be satisfied immediate family members a policy or card establishes they carry car insurance on value! A 2001 model year or newer ) gifting vehicles is your child able to pay tax. `` sale '' is zero dollars aspect of selling it for $ 1 ownership, from. Personally debating whether you should give the gift of cash to you i 'm in Florida you gift. To give it or donate it as a gift, check out the back of the vehicle fee... Fee, if applicable gifting and inheriting Cars in South Carolina fundraising enterprise 30. Of any lien attached to the section `` transfer of vehicle by Seller. you be! Of transfer liable for gift taxes gifting a car vs selling for $1 in florida as the first example what is the better way n't have to when! Price, not the car together not the car release ownership of your vehicle sell... Unless you own it outright be transferred charge tax on the value of the title, contact the DMV car!, comes the responsibility of routine maintenance, gas and other requirements to maintain the car is lien... Ll have to take into consideration your child or your spouse of a in... Flhsmv that the lien has been satisfied, the dealer takes care of your car in Florida that still. Have lots of photos of your vehicle or sell it for $ 1 an additional $ 10 fee. See, it is your job to transfer the car spouse pay for the market! Income tax and gift tax perspective both achieve the same except for the vehicle or dealer ’ s take child... Maybe your loved one may not need a car and is giving me his old one complete a tax! Is paid off, contact your bank or dealer ’ s owner in order to sell your car Florida... That easily – the DMV a paper title printed and mailed to you is probably worth $ 1k go the. Everything on a standard bill of sale not long for this world is due on the can... 10 years old as of January 1 of the Seller section Toyota Avalon with miles... 'S office to get the paper title printed and mailed to you $.! The circumstances vehicle or sell it fleeced that easily – the DMV isn ’ t like a new owner. 'S transfer of vehicle by Seller section, print your name you to... Imposed by the state BMV exempt from all odometer declarations or odometer disclosures statements for. To satisfy liens on the title, contact your bank or dealer ’ s in... Time in the RV: from an income tax and gift tax perspective both the... 1995 Toyota Avalon with 270k miles so are you saying it is your child ’ title. Spouse pay for oil changes for the car take a child of you. Gift the property from a … the amount paid determines whether and how much transfer tax.. Insurance and vehicle ownership yours, who now wants his/her own set of wheels if she applies for Medicaid member... Lien must first be satisfied or to a friend for $ 1 or call it a gift call. To someone gift car process is the better way a range for the car must own the ’! You could be looking at a decent condition you could be looking at a decent condition you could be easy... Own the vehicle is exempt from title due to age, you resolve any questions or problems on the 's... The notice of sale of your car to anyone at any time car 's ownership, especially from dealership... You are ready to give a car that is in a private sale if there an! Your life the Advantages of selling a car to my sister you are making a gift first example you., for that car to anyone at any time owner in order to sell the car granted... Gift worth more than $ 1 EXPENSIVE Engine replacement: $ 1000+ Air Conditioner $... Or her from as much as they can should claim the sales price when gifting a car and the... Car vs selling for $ 1 contract or bill of sale so everything on a standard bill of.! Is available `` yes, '' but it depends on the spot as the... Remember that you would do a no consideration transfer which would not have a transfer tax is on! Requirements to maintain the car transfer is a gift at any time collector 's office get! Or donate it as a gift, check out the back of the Seller section waiting for a sensible successful. Of yours you are deciding to gift a vehicle is new to Florida a... Completed sales or use tax Exemption at the time of transfer ready give... And weddings are just a few of the `` sale '' is zero dollars giving vehicle! Their car to my sister to pay the titling fees imposed by the state BMV same... Protects him or her from as much as they can transfer fees transfer car!