Cars and Real Estate – Name Your Beneficiary?!
Did you know that you can avoid the costs and delays of probate on cars and real estate? Unless titled in a trust, these assets are normally left to be dispositioned by way of a will, which subjects the assets to probate. However, there is another option. Like bank and brokerage accounts, you can designate a beneficiary by use of a “Transfer on Death” (TOD) form, and therefore avoid probate, on cars and real estate depending on your state of residence.
For all transfer on death scenarios, the TOD designation is revocable, which allows you flexibility should you wish to change the beneficiary of your asset. A word of warning – as with any named beneficiary, you should always review them periodically to ensure your beneficiaries are indeed those who you wish to receive your assets. It is not unusual to see ex-spouses still listed as unintended beneficiaries, as an example.
Also, it is always a good idea to consult with your financial planner and/or your estate planning attorney prior to using any of these instruments. A well-crafted estate plan considers tax consequences and coordination of documents (your will and/or trust for example). Once your plan is in place, a well communicated estate plan provides your family with clear instructions, thus avoiding any family strife in a difficult time. We are happy to assist you with the coordination of a plan and professionals, as well as the communication of the plan – just give us a call if we can help.
Should you and your professionals decide a TOD is an appropriate strategy for your car and real estate, here are a few resources for your reference:
To designate a beneficiary for motor vehicles in Maryland, visit mva.maryland.gov/online services and proceed to type beneficiary into the search bar at the top right of the page. Alternatively, complete this process online through the MVA portal. If submitting in person, use Form 471. Please note that the vehicle must be solely owned and currently titled in Maryland and that only one beneficiary can be named. You can review further all instructions and other details online or in-person.
For motor vehicles in Virginia, complete Form VSA 18, and return to any Virginia DMV customer service center. Please note that for a vehicle already titled, you must also submit your title and complete Form VSA 67. Unlike Maryland, the vehicle does not need to be solely owned. You can find additional information through Virginia’s DMV website.
For motor vehicles in D.C., complete the Beneficiary Designation to Certificate of Title Application (DCDMV-ADD-BEN-001) in-person at DC DMV. You must bring either your registration renewal notice, registration, or title.
The Maryland Transfer on Death Deed Act takes effect on October 1, 2026. This bill will allow Maryland homeowners to designate a beneficiary to the property automatically after the owner passes. You can search for MD Senate Bill 651 in your browser, AI app or read the bill itself.
For real property in Virginia, one can use the form outlined in Code of Virginia’s Title 64.2, Subtitle II, Chapter 6, Article 5 to establish a transfer on death deed.
In D.C. there is a TOD form for real property (land or buildings) called the “Revocable Transfer-On-Death Deed.” This must be completed and filed with the Office of the Recorder of Deeds.
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