In 2022, New Jersey enacted a new law to simplify the process for vehicle owners to transfer vehicles at death. N.J.S.A. 39:3-30.1b, which became effective on May 9, 2023, authorizes the owner of a car, camper, or motorcycle titled in New Jersey to designate a beneficiary to receive the vehicle upon the owner’s death. This law does not apply to boats.

How to Designate a Beneficiary

This designation can be made using a form available on the New Jersey Motor Vehicle Commission (NJMVC) website. The form, titled “Transfer on Death Beneficiary Designation,” requires the beneficiary’s full legal name, social security number, birthdate, as well as the VIN number, make, model, and title number of the vehicle. The form must also contain the notarized signature of the original vehicle owner.

Ownership and Flexibility

The owner retains ownership of the vehicle until the time of death and can freely change the beneficiary during their lifetime. More than one beneficiary can be named.

Steps for the Beneficiary Upon the Owner’s Death

Upon the owner’s death, the beneficiary is required to present the beneficiary designation form, the original title of the vehicle, and a certified death certificate for the deceased owner. Additionally, the beneficiary must obtain insurance for the vehicle and complete a Universal Title Application.

Benefits of the New Process

The transfer of a vehicle can now be accomplished similarly to bank accounts with “TOD” (transfer on death) or “POD” (payable on death) designations. Assets with designated beneficiaries such as life insurance policies, retirement accounts, and annuities are known as “non-probate assets” because they automatically pass to the designated beneficiary outside the probate process. This expedites the transfer of ownership and avoids the delays and costs often associated with probate.