Are you gifting or inheriting a car from a family member in Illinois?
You’ll need to properly transfer the vehicle’s title to comply with state laws.
As a former car dealer, I’ve helped many customers navigate the title transfer process to avoid some of the most common issues.
This article will explain all the steps, requirements, and fees to successfully transfer a car title to a family member in Illinois.
Relevant Articles To Read On Car Titles:
- How Much Is Gift Tax On a Car
- How to Transfer A Car Title to a Family Member in Another State
- Can You Add Someone To A Car Title?
- How to Fix Written Mistake On Car Title When Selling
- How To Sign Over A Car Title
Table of Contents
Key Title Transfer Differences – Family Members vs Non-Relatives
The key differences when transferring a vehicle title specifically to a family member in Illinois compared to a non-relative are:
- Lower taxes in most cases due to $0 or very low sale price for intra-family gifts/sales vs higher sale prices for non-relatives
- Added $15 title transfer correction fee that applies for family members
- Gift documentation or $0 bill of sale often needed for family members instead of higher sale price bill of sale
- Beneficiary, death certificates, or probate paperwork may be required for inheriting family vehicles that don’t apply for standard sales
- Family transfers can often be expedited if paperwork confirms relationship status
- Non-relatives undergo standard title transfer timing
- More flexibility to retain family registration and plates vs changing for non-relatives
- Family members can sometimes mail in paperwork if unable to appear in-person together at Secretary of State office
Why a Title Transfer Is Necessary
Transferring the title is crucial whenever vehicle ownership changes – even within families. The title legally proves ownership. Without it in your name:
- You can’t register or insure the car.
- You have no legal right to drive the vehicle.
- You can face fines or have the car impounded if stopped by police.
Don’t mean to scare you! But I want to stress the importance of promptly transferring the title after receiving a family vehicle for everyone’s protection and convenience.
Now let’s explore the process so you can gain that peace of mind of clear vehicle ownership.
Key Requirements for Illinois Car Title Transfers
To transfer ownership to a family member in Illinois, you typically need:
- Signed-over title from the seller/relative listing the new buyer’s name and info
- Odometer disclosure stating the mileage
- VSD 190 application form submitted in the buyer’s name
- Taxes filed (Form RUT-50)
- Title fees paid ($110 total for family transfers)
Specific instructions for transfers involving inheritance, beneficiaries, and trustees will be covered later.
But first, let’s look at the nitty gritty details and fees involved…
Illinois Car Title Transfer Fees & Taxes
The main title transfer fees in Illinois are:
- Basic title transfer fee: $95
- Family transfer title correction fee: $15
So for a total of $110 in title administrative fees.
- Registration/plates: $101 if updating the license plates into the new owner’s name
- Taxes: Between $15 – $1,500 based on the vehicle’s value via Form RUT-50. Find out more here.
- Other county/local fees may also apply based on municipality.
Now that you know the potential costs, let’s look at the step by step process to transfer a title from a family member whether through selling, gifting or inheritance.
Title Transfer Process When Selling to a Family Member
If you’re selling your car to a family member in a private sale, follow these steps:
- Sign-over the vehicle title by filling in the new buyer’s name and address, odometer reading, date of sale, and signing your name in the “Assignment of Title” section.
- The buyer must complete and submit the VSD 190 application within 20 days to the Secretary of State’s office. This standardized form has all the vehicle details. It can often be completed online via the Electronic Registration and Title (ERT) system for convenience.
- The buyer also needs to file a Private Party Vehicle Tax Transaction form (RUT-50) and pay any applicable taxes owed based on sales price and vehicle value to the Secretary of State.
- As the seller, remove your license plates and complete the Seller’s Notice of Sale form (VSD 703) to notify the Secretary of State you sold the vehicle. This releases liability.
- After the buyer submits all paperwork and fees, the state will issue them a new title with their name as owner.
So in summary, the seller signs over the title, buyer submits title application materials, pays fees, and IL SOS transfers ownership legally!
Title Transferring Process When Gifting a Vehicle
Gifting a car to a family member is also common. As the giver, follow these Illinois title transfer steps:
- Sign-over vehicle title by listing the family member’s information in the “Assignment of Title” section. Put $0 for sale price.
- The recipient submits the VSD 190 form to the SOS within 20 days with the signed-over title.
- They must also file taxes on the car’s value via the RUT-50 tax form, typically between $15-$30.
- Pay the $110 in total transfer/correction title fees.
- Once submitted and processed, the Secretary of State mails out a new title in the family member’s name.
Make sure to accurately assign and record miles on the odometer disclosure when initially signing over ownership on the title.
Transferring Vehicle Ownership After a Death
Inheriting a family car after the owner’s passing follows a uniform procedure but gets more complicated if probate is involved.
Here are quick steps for spouses and beneficiaries:
Non-Probate Inheritance Process
- Provide Secretary of State office with:
- Death certificate
- Signed-over vehicle title from survivors
- VSD 190 form application
- Taxes paid (Form RUT-50)
- $110 title transfer fees
- New title issued in beneficiary’s name
Through Probate Court
If assets exceed $100k+ value and no beneficiary/will paperwork exists, you’ll need to contact Probate Court.
- Open a case to be named as vehicle administrator
- Get court orders assigning ownership
- Provide court orders, title, fees to IL SOS
- New title issued in your name after probate closes
probate is often long. Don’t drive inherited vehicles until your name is officially on the new title. Every situation is different – ask the Probate Court clerk to ensure you properly transfer family car ownership after a death.
Transferring an Out-of-State Title From a Relative
Did you receive a car with an out-of-state title from a family member who moved to Illinois or is giving you their old vehicle? As the recipient, here is what to do:
- Get the signed-over out-of-state title from the family member
- Complete the Illinois VSD 190 form with vehicle details
- Provide Secretary of State office a bill of sale/gift document listing $0 if gifted
- Submit taxes via RUT-50
- Pay $110 total in title transfer and alteration fees
- Mail paperwork to Springfield SOS office
- Your new Illinois title is issued after processing
This must be done within 30 days of the relative bringing the car into Illinois. Penalties can apply if late.
Locations to Finish the Illinois Car Title Transfer
You can submit all your paperwork, forms, fees, and signed title in person at a Secretary of State Driver Services facility nearest you.
Find locations here.
Or mail your title transfer application documents to:
Secretary of State
Vehicle Services Department
501 S 2nd Street
Springfield, IL 62756
I recommend submitting it in person during business hours whenever possible so you can ask questions, double check forms are filled out properly, and avoid documents getting lost by mail.
But the mailing address has its place if life is busy and can’t get to an office conveniently!
Key Takeaways – Smooth Illinois Family Title Transfers
- Make sure to sign-over the title, disclosure odometer, provide taxes and fees to legally change ownership records. Shortcuts will only cause issues later!
- Understand probate processes if inheriting vehicles after the death of relatives listed as sole owners.
- Submit paperwork ASAP upon any ownership change – you typically have 20-30 days as a buyer to finish registering it to avoid penalties.
- Seek help from the SOS office clerks or myself as a former dealer if you have any additional questions!
My Closing Thoughts
I hope this guide gives you confidence on the way forward to easily change that family vehicle’s title into your name hassle-free following state laws. Let me know in the comments if you have any other Illinois title transfer questions!