How To Donate A Car To Family Member In Louisiana

How To Donate A Car To Family Member In Louisiana

If you are a new resident with a new vehicle or a longtime resident giving a vehicle to a family member, understanding how to transfer the car title is an important part of the process. Many of us dream of surprising a loved one with a new or restored car they have always wanted. While this dream may not always be in the budget, it is still common for families to gift an older or as-is vehicle to a loved one who needs transportation.

Donating a car to a family member in Louisiana is a generous and thoughtful way to provide access to a reliable mode of transportation. Donating a car to a family member in Louisiana involves a few simple steps, from transferring the title to filing the required forms. As long as you follow these steps and ensure everything is properly documented, you’ll be able to donate without any issues.

However, there are specific steps you need to follow to ensure the title transfer is completed properly. From completing the necessary paperwork to submitting the required forms with the Louisiana Office of Motor Vehicles, knowing the right steps can make the process smooth and straightforward. This guide will take you through the steps to donate a car in Louisiana, ensuring that both you and the recipient understand the process, the paperwork needed, and any potential fees. Whether you are giving away a well-loved family car or an extra vehicle that is no longer needed, this step-by-step guide will help you navigate the donation and title transfer with ease.

READ: How To Get A Donation Car

Why Should I Donate My Car To A Family Member?

Donating your car to a family member can be a generous and practical way to support a loved one. Below are some reasons why it is a great choice:

Cost Savings : Donating your car helps you avoid ongoing expenses like maintenance, insurance, and registration fees, especially if you no longer need the vehicle.
Helping a Family Member in Need:  If your family member is in need of reliable transportation and cannot afford a car, donating yours provides a valuable resource.
Strengthening Family Bonds: A car donation is a thoughtful way to show you care, strengthening your relationship with the recipient and offering something truly helpful.
Less Hassle Than Selling: Donating your car is much quicker and simpler than selling it. You avoid negotiations, paperwork, and the time spent finding a buyer.
Tax Benefits: Although donating a car to a family member does not provide the same tax breaks as a charity donation, it can still save you money by eliminating the need to sell or keep the vehicle.

Auto Insurance Requirements In Louisiana

Make sure the person you are donating the car to purchases auto insurance. They cannot legally drive or register the car in their name without providing proof of insurance. Louisiana requires liability coverage of at least:

$15,000 for bodily injury per person
$30,000 for bodily injury per accident
$25,000 for property damage per accident

Drivers who operate a vehicle without insurance in Louisiana may not be eligible for as much, or any, compensation if they are injured in an accident.

How Much Does a Title Transfer Cost?

The cost to transfer a car title is as follows:

A $68.50 title fee.
An $8 handling fee.

If you need to replace a lost, damaged, or destroyed title, the cost is also $68.50. Note that title transfer fees may increase due to credit card fees and surcharges imposed by parish governments. For accurate and up-to-date pricing, it’s best to contact your local OMV office.

Louisiana Car Title Transfer Requirements| How To Donate A Car To Family Member In Louisiana

If you are wondering how to fill out the transfer of title form, simply follow the instructions listed on the form itself. The form can only be completed and submitted along with the following documents;

The vehicle’s current registration certificate.
A notarized bill of sale.
A signed and notarized certificate of title.
For vehicles less than 10 years old and trucks under 16,000 pounds, an odometer disclosure statement is required.
If the vehicle is under a leasing or financing agreement, provide a UCC-1 Financing Statement or security agreement.

How to Transfer a Car Title to a Family Member In Louisiana

To successfully transfer a car title to a family member, you will need to:

Complete a Vehicle Application form.
Fill out, notarize, and submit an Act of Donation of a Movable form.

In details;

Obtain a lien release document from the lienholder if the title shows any unreleased liens.
Complete a Vehicle Application form to have the vehicle re-titled in the recipient’s name.
Fill out and notarize an Act of Donation of a Movable form.
Complete an Odometer Disclosure Statement if the vehicle is less than 10 years old (skip this step if the vehicle is older than 10 years).
Submit the online Notice of Transfer on the Louisiana OMV website.
Pay the title transfer fee.
Register the vehicle in the recipient’s name.
After submitting the Notice of Transfer, remove the old license plates and either destroy them or return them to the OMV.

Does Donating a Car Affect My Taxes in Louisiana?

In most cases, donating a car will not affect your taxes, either positively or negatively. Unless you are donating the car to a charity or religious organization, you will not be eligible for a tax deduction. While you may be subject to taxes on large donations, the federal “gift tax” only applies if the value of the car exceeds $18,000 as of 2024. If the car is worth more than $18,000, the donor will be required to pay a gift tax, and the recipient may also be required to pay taxes on the donated car.

How to Donate a Car to a Family Member in Louisiana: A Step-by-Step Guide

Donating a car to a family member in Louisiana is a simple process. Below is a step-by-step guide to help you through it:

Prepare the Necessary Documents

Before transferring the car, gather the required documents. You will need the car’s title, a notarized bill of sale, and the vehicle’s current registration. If the car is less than 10 years old, you will also need to include an odometer disclosure statement.

Clear Any Liens

If there is a loan or lien on the car, make sure to get a lien release from the lender. This ensures the title transfer will go smoothly.

Complete the Required Forms

You will need to fill out a few forms, including the Vehicle Application form, to transfer the title to the recipient’s name. Additionally, you must complete and notarize an Act of Donation of a Movable form.

File the Notice of Transfer

Go to the Louisiana Office of Motor Vehicles website and file the Notice of Transfer. This must be done within five days to protect you from any future liability related to the car.

Pay the Title Transfer Fee

There is a fee of $68.50 for the title transfer, plus an $8 handling fee. Be prepared to pay this when you visit the OMV.

Ensure Insurance Coverage

The person receiving the car must have auto insurance before they can register or drive it. Make sure they have the necessary coverage in place.

Remove the License Plates

Be sure to remove the car’s license plates and either return them to the OMV or destroy them.

READ: Best Way To Donate A Car

Mistakes to Avoid When Donating a Car to a Family Member in Louisiana

Not Clearing the Title

Ensure any liens are cleared before transferring the title to avoid complications.

Not Removing License Plates

Remove the license plates before donating and either return or destroy them.

Incomplete Paperwork

Missing forms, like the Act of Donation or Odometer Disclosure (for cars under 10 years old), can delay the transfer.

Failing to Ensure Insurance Coverage

The recipient must have insurance before registering or driving the car.

Not Filing the Notice of Transfer

File the Notice of Transfer with the OMV within 5 days to release liability.

What to Do If the Car Is Stolen After Donation

Report the theft immediately, providing car details such as make, model, VIN, and license plate.
Contact the Louisiana OMV to report the theft and protect yourself from liability.
If the vehicle is still insured, file a claim with your insurer.
Ensure the recipient reports the theft and contacts their insurance company for coverage.
Retain copies of all theft-related reports and communications for future reference.

Donating a car to a family member in Louisiana is a thoughtful way to help someone you care about, but it is important to make sure everything is done the right way. Taking the proper steps will help the process go smoothly and ensure the transfer is legal and complete. Visit the website for more information. I hope the provided information is helpful. Share your thoughts below in the comment section.

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