Gifting car to our son, process?

3,893 Views | 18 Replies | Last: 4 yr ago by Absolute
Absolute
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AG
We want to go ahead and gift son's car to him now that he has graduated college. Paid off and we have the title. Think I understand the procedure, but not positive due to minor logistic complication. Complication is that we are in Dallas and he and the car are in Phoenix. As he is now working full time, there is no good time for them both to come here.

Additional fun wrinkle, the registration on the car is up in August, gonna be hard to get it inspected to renew. Viewing this as a time deadline, and that he should register it out there once we get it transfered.

We sent the 14-317 form out there for him to sign and get noterized. Have it back. We will sign and such on it.

Then it seems that something will have to be done with a form 130-u? This appear to be to register it here (Texas) in his name? Can't tell if it would have to be signed by him in person or if he could sign remotely and I take everything in here. Could we skip this step if he is going to register it immediate in AZ?

Tia
CanyonAg77
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AG
If the vehicle is out of state, go to the tax office, tell them it is, they will register it without an inspection. I suspect title transfer works the same. He will then have something like 5 days to inspect it once it gets back to Texas.

Our daughter had one of our vehicles in Mississippi for a while. We actually didn't even worry too mch about registration, but some states will ticket you if it's not registered.


Sorry, no brilliant thoughts on out-of-state registration. But I bet the folks at the tax office can guide you.
JSKolache
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AG
Sign title over and mail it to him. He can handle the rest in state of residence.
Absolute
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JSKolache said:

Sign title over and mail it to him. He can handle the rest in state of residence.


Would he still be allowed to take advantage of the gift part? Car isn't worth a whole lot so may not really matter
HollywoodBQ
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AG
As far as re-registering the car, assuming you're in Dallas where you'd need some sort of smog test, remember that the car doesn't have to go to Dallas to get an inspection, it just has to make it to Texas. El Paso is only a 6 hour drive from Phoenix.

I had a friend who lived in the desert in California and had a vehicle that wouldn't pass a California smog test so, he kept it registered in Texas. So, once a year, he trekked to El Paso to get his paperwork sorted out. That's an extreme way to go obviously but, since Phoenix is closer, you could easily use that strategy.

I do like the idea of just signing over the Texas title and dropping it in the mail. Let your kid sort out the registration. That's probably the easiest thing to do.
The Wonderer
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AG
What state is he going to title the car in?

If Texas, fill this out and have him sign it: https://www.txdmv.gov/reports-and-data/doc_download/998-form-130-u-application-for-texas-title-and-or-registration

and this: https://comptroller.texas.gov/forms/14-317.pdf

And then this so that you can do all of the paperwork for him in Texas: https://www.txdmv.gov/reports-and-data/doc_download/952-vtr-271-limited-power-of-attorney-for-eligible-motor-vehicle-transactions

The Wonderer
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AG
If Arizona, here: https://www.dmv.org/az-arizona/title-transfers.php
Absolute
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AG
Thanks for the thorough reply. Think I had the Texas part except for the poa.

Seems easiest to just sign the title and send it out and let him sort it out there. I assume they would base things on the current vehicle value(?) which wouldn't be that high.
Absolute
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AG
Thought of this. Wouldn't be that bad for him.
The Wonderer
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Absolute said:

Thanks for the thorough reply. Think I had the Texas part except for the poa.

Seems easiest to just sign the title and send it out and let him sort it out there. I assume they would base things on the current vehicle value(?) which wouldn't be that high.
He needs to title and register in whatever state he's residing in.

Out-of-State Title Transfer to AZ
When you move to Arizona, you must transfer your out-of-state title as soon as you become a resident.


NOTE: If you live or work in the Phoenix or Tucson areas, your vehicle must pass an emissions inspectionBEFORE you complete the DMV title transfer and registration. Visit our AZ Car Inspection page for complete details.

To get an AZ title, you'll apply in person at your local MVD office. You need to take:
  • The Title and Registration Application (Form 96-0236).
  • One of the following documents:
    • The vehicle title if you own the vehicle outright.
    • Your vehicle registration AND a lien clearance from your lienholder if you have a lien.
    • Power of Attorney from the lessor if you're leasing your vehicle.
  • Your license plates.
  • An emissions compliance form if you're in the Phoenix or Tucson areas.
  • Payment for title transfer and registration fees:
    • $4 fee for a vehicle title transfer.
    • $8 for vehicle registration.
    • $1.50 fee for air quality research.
    • Vehicle license tax based on the value of the vehicle.
    • Highway Patrol operations fee:
      • $32 per vehicle per registration year for most vehicles.
      • $5 Street-legal golf carts and off-highway vehicles (OHVs).
For more information about registration and tags, see our Car Registration and Arizona License Plates pages.
Absolute
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AG
Yup saw that. Think we should complain that their dmv considers him a resident, but asu will not for 2 more years?
The Wonderer
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AG
Absolute said:

Yup saw that. Think we should complain that their dmv considers him a resident, but asu will not for 2 more years?
Is he still in school? If so, he can continue to claim Texas residency since "he is only there for school attendance."
Waterski02
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AG
We once completed a transfer of title with a signed title and bill of sale that stated simply. "For the sum of 1.00 and other consideration". Saved me taxes and dad didn't include it as a gift. I always figured If push came to shove "other consideration" would be all the crap I had to do as a kid.
Absolute
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AG
No, he has graduated. Considering a masters though.
txyaloo
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Waterski02 said:

We once completed a transfer of title with a signed title and bill of sale that stated simply. "For the sum of 1.00 and other consideration". Saved me taxes and dad didn't include it as a gift. I always figured If push came to shove "other consideration" would be all the crap I had to do as a kid.
Because of people lying and doing this. the state passed a standard presumptive value law. Unless it's a gift between family members, if you put a car cost $1, you're going to pay 80% of the SPV which the tax assessor looks up based on VIN.
EMY92
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AG
You should be able to "gift" it to him, this is a $10 fee instead of the 80% of the value like txyaloo mentioned.
The Wonderer
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AG
EMY92 said:

You should be able to "gift" it to him, this is a $10 fee instead of the 80% of the value like txyaloo mentioned.
Read the thread.
Absolute
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AG
Thanks for the replies.

Going to sign over the title and send it out to him to handle there. Seems like it would be redundant to go through the stuff here in TX and then send it out. Cannot tell if AZ has the gift thing to get around taxes or not. They make limited references to it on the website, but cannot find a form like the Texas one. Will be a good grown up lesson for him to work it out.
The Wonderer
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AG
Absolute said:

Thanks for the replies.

Going to sign over the title and send it out to him to handle there. Seems like it would be redundant to go through the stuff here in TX and then send it out. Cannot tell if AZ has the gift thing to get around taxes or not. They make limited references to it on the website, but cannot find a form like the Texas one. Will be a good grown up lesson for him to work it out.
They don't have one. Same form for all transfers.
Absolute
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AG
Yeah that's what I figured.
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