What Happens If Two People Own a Car And One Dies in North Carolina

A motor vehicle titled in the names of two co-owners in North Carolina does not automatically vest in the survivor upon one co-owner's death unless the title carries a specific survivorship designation. North Carolina's Division of Motor Vehicles (NCDMV) issues titles that may reflect Joint Tenants with Right of Survivorship (JTWROS), and the presence or absence of that designation controls the path to transferring or correcting the title record. The surviving co-owner, heir, or estate representative must act through a license plate agency to update both title and registration after a co-owner's death.

Determine How the Names Appear on the North Carolina Car Title

When two individuals apply to title a vehicle together in North Carolina, they may request a JTWROS designation by completing the Joint Tenants with Right of Survivorship Affidavit (MVR-620) at the time the title is issued. If approved, the abbreviation "JTW" is printed on the certificate of title. Co-owners who do not make this election hold the vehicle as tenants in common under North Carolina law, and the title will not carry survivorship language.

All co-owner signatures on title documents must be notarized and accompanied by a black-and-white copy of the alternate owner's valid driver license or identification.

If the Title Shows Survivorship Language

A certificate of title bearing the JTWROS designation means that full ownership passes to the surviving co-owner upon the death of the other co-owner. No estate proceeding is needed to effect this transfer. The survivor presents a certified death certificate, the existing title, and a completed Title Application (MVR-1) at a license plate agency to obtain a new title reflecting sole ownership.

Because this change removes a co-owner without compensation, the highway-use tax does not apply. N.C.G.S. § 105-187.6(a)(3a) provides a full exemption for transfers to one or more of the same co-owners reflecting the removal of another co-owner when no consideration is exchanged. The surviving co-owner must submit a Highway-Use Tax Exemption Certification (MVR-613) to claim this exemption.

If the Title Does Not Show Survivorship Language

In the absence of a JTWROS designation, co-owners hold title as tenants in common. The deceased co-owner's interest does not pass to the survivor automatically; instead, it becomes an asset of the decedent's estate. The surviving co-owner retains only his or her own undivided interest in the vehicle. Transferring or consolidating ownership requires action through the estate—either full administration, the spousal year's allowance, or one of the affidavit procedures available for qualifying estates under N.C.G.S. § 20-77.

North Carolina Car Title Rules After One Owner Dies

N.C.G.S. § 20-77 establishes the framework for transferring vehicle title by operation of law. The statute directs the transferee to obtain a new certificate of title by submitting a proper application, paying applicable fees, presenting the last certificate of title if available, and providing whatever instruments or documents of authority are sufficient to evidence the transfer of an interest in chattels.

In cases of inheritance or devise, the NCDMV will transfer both title and license upon receipt of a certified copy of a probated will, letters of administration, or a certificate from the clerk of superior court assigning the vehicle to the surviving spouse as part of the year's allowance. Title assignments must be executed before a person authorized to administer oaths, consistent with N.C.G.S. § 20-72(b).

Registration plates must be removed from the vehicle at the time of any ownership transfer, unless the plates are being transferred to another vehicle owned by the same person.

Does a Car Go Through Probate in North Carolina if One Owner Dies?

Probate is not required in every situation. The applicable procedure turns on the survivorship designation, the size of the estate, and the relationship of the claimant to the decedent.

JTWROS designation on title. The vehicle bypasses the estate entirely. The surviving co-owner holds full title by operation of law and needs only a death certificate and standard title application to update the NCDMV record.

Estate with a personal representative. When the decedent's interest must pass through a probated estate, the executor or administrator transfers the vehicle by presenting letters testamentary or letters of administration to a license plate agency along with the title and a new MVR-1 application.

Transfer by heir affidavit under N.C.G.S. § 20-77(b). When the decedent died intestate, and no administrator has qualified—or when the decedent died testate with a small estate that does not justify the cost of full administration—the Division may transfer the vehicle upon an affidavit executed by all heirs. The affidavit must state the decedent's name, date of death, that the decedent died intestate or left a purported will with no administration pending or expected, that all debts have been paid or the transfer proceeds will be used for that purpose, the names, ages, and relationships of all heirs and devisees, and the transferee's name and address. The form used for this purpose is the Affidavit of Authority to Assign Title (MVR-317), which is not available online and must be obtained from the clerk of superior court in the county of the decedent's residence.

Small estate affidavit under N.C.G.S. § 28A-25-1. Separately from the MVR-317 procedure, when a decedent dies intestate, leaving personal property valued at $20,000 or less (after subtracting liens and encumbrances), an heir may file a small estate affidavit with the clerk of superior court at least 30 days after the date of death. A certified copy of that affidavit is sufficient to compel the transfer of vehicle title and license under subsection (c) of the statute. The threshold rises to $30,000 when the affiant is the surviving spouse and sole heir. A parallel provision for testate decedents exists under N.C.G.S. § 28A-25-1.1, with the same dollar limits.

Spousal year's allowance. The surviving spouse may also obtain the vehicle through a certificate from the clerk of superior court confirming assignment of the vehicle as part of the spousal year's allowance. Additional detail appears under the Surviving Spouse heading below.

How To Transfer a Car Title in North Carolina After a Co-Owner Dies

General Process

All title transactions are processed at NCDMV license plate agencies. The steps differ by transfer method.

JTWROS survivorship transfer:

• Obtain a certified death certificate for the deceased co-owner.
• Complete a Title Application (MVR-1) listing the surviving co-owner as the sole owner. The form must be notarized.
• Complete the Highway-Use Tax Exemption Certification (MVR-613), checking the co-owner removal exemption.
• Present the current certificate of title, the death certificate, the completed MVR-1, and the MVR-613 at a license plate agency.
• Pay the certificate of title fee.

Estate administration transfer:

• Obtain letters testamentary or letters of administration from the clerk of superior court.
• Complete the Title Application (MVR-1) and have it notarized.
• Complete the Odometer Disclosure Statement (MVR-180) if the vehicle is not exempt by age and the Damage Disclosure Statement (MVR-181).
• Submit the Highway-Use Tax Exemption Certification (MVR-613), selecting the will-or-intestacy exemption, if no consideration was paid.
• Present all documents along with the current title at a license plate agency and pay the title fee.

Affidavit transfer (MVR-317):

• Contact the clerk of superior court in the county where the decedent resided to obtain the Affidavit of Authority to Assign Title (MVR-317).
• Have all heirs sign the affidavit before a notary. File the affidavit with the clerk along with supporting documents—including a death certificate, proof of vehicle value, and paid funeral and burial statements.
• After the clerk processes the filing, present the filed affidavit, the current title, and a completed MVR-1 at a license plate agency.
• Pay the title fee and any clerk filing fee.

If the title is missing, file an Application for Duplicate Title (MVR-4) before initiating the ownership transfer. The duplicate title is subject to a mandatory 15-day waiting period before issuance.

Applicable Fees

NCDMV publishes the current fee schedule as (MVR-94). The charges most likely to apply during a title transfer after a co-owner's death include:

Highway-use tax, normally assessed at 3% of the vehicle's retail value, is fully exempt for transfers by will or intestacy and for transfers removing a co-owner without compensation. Revenue from the highway-use tax is credited to the North Carolina Highway Trust Fund. Residents of Durham, Orange, and Wake County pay an additional $15.00 regional fee per registration transaction, and Randolph County residents pay an additional $1.00 Piedmont Authority for Regional Transportation fee.

Surviving Spouse

North Carolina's year's allowance, codified in N.C.G.S. § 30-15, entitles the surviving spouse to receive personal property—including a motor vehicle—valued at up to $60,000 for the surviving spouse's support for one year after the death of the deceased spouse. This allowance is exempt from judgment liens and execution against the decedent's estate and takes priority over other estate claims.

To invoke this right, the surviving spouse must file a verified petition with the clerk of superior court. If a personal representative has been appointed, the petition must be filed within six months of the issuance of letters testamentary or letters of administration. The clerk enters an order specifying the property to be awarded. N.C.G.S. § 20-77(b) then directs the NCDMV to transfer both title and license upon presentation of a certificate from the clerk confirming the assignment.

N.C.G.S. § 20-77(b) separately authorizes a surviving parent to execute the heir affidavit and transfer the interest of a decedent's minor or incompetent child when such child does not have a guardian.

Documents Needed to Transfer a North Carolina Car Title After Death

Common Documents

The following items are generally required regardless of the transfer method:

• Current certificate of title (original), with the assignment section completed before a notary
• Title Application (MVR-1), notarized
• Certified copy of the decedent's death certificate
• Odometer Disclosure Statement (MVR-180), if the vehicle is not exempt by age
• Damage Disclosure Statement (MVR-181)
• Highway-Use Tax Exemption Certification (MVR-613), if the transfer qualifies
• Lien release from the lienholder, if any recorded lien has been satisfied

Additional documents vary by transfer method:

What if There Is a Loan on the Car?

An outstanding lien does not block the title transfer, but the lien will carry forward onto the new certificate of title until formally released. Once the loan is paid in full, the lienholder must provide a lien release, and the transferee should submit the Application for Removal of Lien from Certificate of Title (MVR-8) along with a $25.50 removal fee to clear the record.

If the loan remains unpaid, the new owner should coordinate with the lienholder regarding assumption, refinancing, or payoff before or concurrent with the title transfer. N.C.G.S. § 20-77(b) expressly provides that a transfer by heir affidavit does not affect the validity of any creditor's lien. When the original title is in the lienholder's possession and has been lost, the lienholder may apply for a duplicate title using MVR-4 by submitting its own supporting affidavit.

Contact Information

North Carolina Division of Motor Vehicles
1515 N. Church Street, Rocky Mount, NC 27804
Phone: (919) 715-7000
Official Website: N.C. Division of Motor Vehicles