Giving a Vehicle as a Gift
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You may give a vehicle to another person as a gift instead of selling it. To protect both you and the recipient, the transfer must be completed correctly with the Maryland Motor Vehicle Administration (MVA).
This page explains what you need to do when gifting a vehicle.
What counts as a gift?
A vehicle is considered a gift when:
- No money is exchanged, and
- The transfer is between eligible individuals under Maryland law
A gift transfer may be exempt from excise tax, but only if all requirements are met and proper documentation is provided.
Before giving a vehicle
Make sure you have a valid title
You must have a valid Certificate of Title in your name. This document proves legal ownership of the vehicle.
The title must:
- Match the vehicle’s VIN
- Show no liens, or include a lien release
- Be signed exactly as your name appears
Check tax exemption eligibility
Not all gift transfers qualify for an excise tax exemption. The recipient may need to pay excise tax if the transfer does not meet MVA requirements.
A gift certification form may be required to claim the exemption.
How to give a vehicle as a gift
Step 1: Complete the title transfer
On the Certificate of Title:
- Enter the recipient’s name as the buyer
- Write “GIFT” in the sale price field (do not leave it blank)
- Record the odometer reading (required by federal law)
- Sign and date the title
Do not cross out or alter information.
Step 2: Complete the gift certification (if required)
A gift certification form may be required to confirm that:
- No money was exchanged
- The transfer qualifies as a gift under Maryland law
Both the giver and the recipient may need to sign this form.
Step 3: Remove your license plates
Before handing over the vehicle, remove your license plates.
Do not give your plates to the recipient.
After giving a vehicle
Recipient's responsibilities
The person receiving the vehicle must:
- Title and register the vehicle in their name
- Pay required fees, unless exempt
- Obtain Maryland vehicle insurance
- Complete any required inspections
The recipient may need a vehicle titling appointment at an MVA location to complete the process.
Giver's responsibilities
- Return your license plates promptly to avoid insurance penalties or registration issues.
- After returning your plates, contact your insurance company to cancel coverage.
Designating a beneficiary on a vehicle title
A vehicle owner can designate a beneficiary to receive ownership of a Maryland titled vehicle upon their death. Since the designation is made prior to the death of the individual, the vehicle will not be considered part of the estate, therefore Letters of Administration will not be required for transfer. Requirements and instructions:
- The vehicle must be solely owned and currently titled in Maryland
- Only one beneficiary can be named; which can be either an individual or a business entity
- A beneficiary must be designated prior to the death of the vehicle owner
- A beneficiary may be added, even if the vehicle is subject to a lien. When the vehicle is transferred to the beneficiary all liens must be satisfied, or a letter of permission from the lien holder must be provided to change ownership to the beneficiary
- The designation of a beneficiary does not affect the ownership of the vehicle until the death of the vehicle owner
- The owner of the vehicle may choose to delete or change the designation of a beneficiary or sell the vehicle at any time prior to their death without the consent of the beneficiary
- Once a beneficiary is designated, a corrected title will be delivered to the vehicle owner. All previously issued titles will be voided.
- No inspection is required if the beneficiary is an immediate family member (spouse, child, or parent of the deceased)
- The vehicle registration may be transferred if the vehicle is transferred to a member of the immediate family. All other transfers will require the purchase of new registration plates
- At the time the transaction is submitted for processing a death certificate must accompany the title. If the MVA has received notification of the vehicle owner’s death from the Department of Health and Mental Hygiene the death certificate would not be required
- There is a fee to add, delete or change a beneficiary to a vehicle title record
You can complete the beneficiary designation for your vehicle title online through myMVA.
Important reminders
- You remain responsible for the vehicle until the title is properly transferred.
- Do not leave buyer or price fields blank on the title.
- Improper transfers may result in taxes, penalties or delays.
- Tax exemptions are not automatic and must be documented.
Questions? We can help.
Contact us if you have questions or need more information.