How To Transfer a Car Title to a Family Member in Kentucky in 2025

What Does Transferring a Car Title to a Family Member in Kentucky Mean?

Transferring a car title to a family member in Kentucky involves legally updating the ownership record of a vehicle. This process takes place when an individual wishes to pass ownership of a vehicle—along with its corresponding license plate—to an eligible relative. The transaction may be structured as either a gift or a sale, depending on the circumstances. The new owner’s name is officially recorded on the title, signifying who is legally responsible for registration, insurance, and any future transactions involving the vehicle.

The Kentucky Transportation Cabinet regulates vehicle title transfers. When transferring a title to a family member, certain tax exemptions and reduced fees may apply, but these specifics depend on the nature of the transfer (gift or sale), the relationship between the parties, and compliance with local regulations. The process typically requires completing specific paperwork, submitting necessary identification and insurance documentation, and ensuring the transaction details (including the odometer reading) are accurately recorded.

Eligible Family Members for Title Transfers in Kentucky

Kentucky recognizes certain relationships as qualifying for intrafamily title transfers. Individuals transferring a vehicle within these recognized family relationships might benefit from simplified processes or exemptions. Eligibility generally extends to:

• Parents and children (including step-parents, step-children, or legally adopted children)
• Spouses (including legally recognized common-law spouses in compliance with state guidelines)
• Siblings (including half-brothers and half-sisters, if recognized by law)
• Grandparents and grandchildren

Not all extended family members qualify for the special procedures or fee exemptions. It is advisable to verify eligibility with local county clerk’s offices, as rules or interpretations may vary by jurisdiction. Individuals who are uncertain about their eligibility should contact the Kentucky Transportation Cabinet or consult a legal professional to ensure proper compliance.

How To Transfer a Car Title as a Gift to a Family Member in Kentucky

Transferring a car title as a gift can save the recipient from additional financial obligations associated with a purchase. The process must still follow Kentucky’s official guidelines to ensure the transaction is recognized. The steps are outlined below:

1. Complete the Assignment of Title:
   • Locate the assignment section on the back of the vehicle’s original title.
   • Indicate “gift” or a nominal sale price (often recorded as $1) as required by your local clerk’s office.
   • Accurately record the odometer reading, if the vehicle is less than 10 years old, in the appropriate field.
2. Obtain Insurance and License Plate Details:
   • Confirm the family member who will receive the vehicle is prepared to secure the required insurance coverage.
   • Make sure the license plate is either being transferred with the vehicle or that the new owner will secure their own plate upon registering the vehicle.
3. Present Identification:
   • Both parties (the current owner and the new owner) should have valid driver’s licenses or approved photo identification.
   • If the current owner cannot appear in person, a notarized power of attorney granting the right to transfer the title may be required.
4. Submit the Required Documentation:
   • Bring the signed title, proof of insurance, government-issued IDs, and any other documents specific to your county clerk’s office.
   • Check for any necessary county clerk forms that must be completed regarding gifts of motor vehicles.
5. Pay Applicable Fees:
   • Depending on local rules, there may be a small title transfer fee.
   • Tax exemptions may apply for gifts between qualifying family members, but confirm any potential excise tax requirements with the county clerk.

How To Transfer a Car Title as a Sale to a Family Member in Kentucky

If ownership of a vehicle is transferred through a purchase rather than a gift, additional steps might be required, especially regarding taxes. Selling a car to a family member in Kentucky still requires legally documenting the transfer. Below is a general procedure for such transactions:

1. Negotiate the Sale Terms:
   • Determine a sale price that aligns with the guidelines of the county clerk’s office.
   • Ensure the sale price is clearly stated on the title and any accompanying transfer forms.
2. Prepare the Title:
   • Locate the “transfer” or “assignment” section on the back of the original title.
   • Include the purchase price, odometer reading (if required), and sign in the presence of a notary public, if required by your county.
3. Obtain Proof of Insurance and Vehicle Inspection (If Required):
   • The buyer should confirm that insurance has been or will be purchased.
   • Some counties require an inspection to verify VIN and, occasionally, other vehicle details.
4. Submit All Documentation:
   • Take the signed, completed title to the buyer’s local county clerk’s office.
   • Present proof of insurance, valid photo identification, and any additional county or state forms (such as an Odometer Disclosure Statement).
5. Pay the Sale-Related Fees:
   • When transferring ownership through a sale, the new owner typically pays usage tax unless a family transfer exemption applies.
   • Standard title transfer fees and county clerk charges may also apply.

What Documents Are Needed To Transfer a Car Title to a Family Member in Kentucky

Successfully transferring a car title hinges on accurate and complete documentation. While requirements can vary among counties, the following documents are commonly required throughout Kentucky:

• Original Title: Properly signed and assigned to the new owner.
• Proof of Insurance: The recipient must show valid insurance coverage for the vehicle in Kentucky.
• Valid Photo Identification: Both parties usually need state-issued driver’s licenses or other approved forms of ID.
• Odometer Disclosure Statement: If the vehicle is under a certain age, an odometer reading is required. It is sometimes included on the title or in a separate statement.
• County Clerk Forms: Various county-specific forms, which may include gift affidavits or power-of-attorney documents if the original owner cannot be present.

It is advised to contact the local county clerk’s office in advance to verify additional forms or requirements. Missing or incomplete documents could postpone the completion of the title transfer, resulting in delays for both parties involved.

How To Transfer a Car Title to a Family Member Online in Kentucky

Certain counties and service centers in Kentucky may offer online or remote services to facilitate a title transfer to a family member. While not universally available in all counties, the following guidelines provide a general framework for those who can complete this process online:

1. Visit the Authorized Website:
   • Counties that accept online transfers typically partner with the Kentucky Transportation Cabinet’s service portal or a verified third-party vendor.
2. Register or Log In:
   • Both the current owner and the family member receiving the vehicle may need to create user accounts to finalize the process.
3. Provide Vehicle and Personal Details:
   • Accurately enter the Vehicle Identification Number (VIN), current mileage, and relevant personal information.
   • Upload any scanned documents that are required, such as proof of insurance or a signed Power of Attorney if someone else is fulfilling the transaction obligations.
4. Pay Fees Electronically:
   • The online system will include instructions for paying the applicable title transfer fee or reduced excise tax if transferring between eligible family members.
5. Confirm Submission:
   • Once payment is processed, verify that you receive a digital confirmation or reference number.
   • Depending on the county clerk’s procedure, a physical copy of the updated title or registration could be mailed to the new owner upon successful processing.

What’s the Cost To Transfer a Car Title to a Family Member in Kentucky?

The cost of transferring a car title to a family member in Kentucky varies depending on a number of factors, including the relationship between the parties, the nature of the transfer (gift or sale), and county-specific fees. The table below provides an overview of common charges:

However, when transferring a vehicle as a gift between immediate family members, some county clerk’s offices may not impose any usage tax if the parties can prove the family relationship. It remains advisable to contact the specific county clerk’s office to confirm exact charges, as fees can change.

Useful Links

• Kentucky Transportation Cabinet: https://transportation.ky.gov
• Drive Kentucky (KY DMV Services): https://drive.ky.gov
• Kentucky Department of Revenue: https://revenue.ky.gov