Brand new law in Colorado:
A simple, half-page form can be another good estate planning tool to save your family time and money when it comes to the transfer of vehicles to beneficiaries upon death. This new form, called the DR2009, was released on August 8, 2016 and can be found on the Colorado Department of Motor Vehicles website.
Before the introduction of this new process, more steps were needed, and your loved ones may have had to involve the court to procure the vehicle title transfer. Probate is costly in many ways: court fees, attorney fees, and considerable amounts of time are often associated with this process.
Now, however, the State of Colorado has simplified the process for those who are thinking ahead. The new form requires only the following information:
Vehicle owner’s name
Name of beneficiary
Vehicle make, model, & VIN
Notary signature and stamp
Complete the form and keep the original with other important papers, including your latest estate plan, and upon death, the vehicle title and beneficiary designation form can be presented at the county clerk’s motor vehicle department, and the new owner can procure the title with their name without setting foot in court.
This transfer is certainly simpler, but there are a few considerations for those who are filling out the form. First, unlike a transfer of real estate, these forms are not usually recorded with the county, so there is no record of any changes over time. Filling out a form and then deciding to change the beneficiary can lead to grounds for a contest, an even lengthier and more expensive court process.
Also note that these transfers could conflict with your will or trust, so you will want to consider your overall asset transfer strategy when filling out this form.
As always when considering a transfer strategy, you’ll want to consult with an experienced estate planning attorney to avoid more serious problems for your loved ones. At Swan Law, we advocate for preventative measures that make life easier for families.
If your estate plan was written more than 3 years ago or was written in a state other than Colorado, your plan needs to be updated to fit your life and the law. Call Jamie at 970-879-1572 or email assistant@swanlawoffice.com for assistance.