How To Gift A Car? My Niece is graduating from college need advice

MalindaRayy

Hi, I'm new to the group and seeking advice on giving a car to my niece in California. My niece Bertha is about to complete her scholarship, and I'm thinking to gift her a honda civic car. I have no clue how to do it, and I am a little nervous about whether it will be a perfect gift for her. She is a brilliant student, and I want to do my best for her. Please advise me.

poppy123456

Are you living in UK or US? If you live in the UK then it would be better to ask someone over in the US if they can help you do this.

If you live in the US then you can just go and take a look at some cars but if you don't have any knowledge on them you may want to take someone with you who does. I wouldn't personally buy a used car myself without taking someone with me. (assuming it's used you're going to buy) Can't advise about anything else to do with insurance or any other road laws you have over there because it's very likely to be very different to what it is over here in the UK. Scope is a UK based forum so the majority of members live in the UK.

Alex_Alumni

Hi again @MalindaRayy and thanks for your query, I'm afraid I don't have any direct experience of this so I can't advise you directly. 

Can I ask if you've spoken to your niece's parents, or perhaps other family based in California, about your gift idea?

anawilliam850

MalindaRayy said:

Hi, I'm new to the group and seeking advice on giving a car to my niece in California. My niece Bertha is about to complete her scholarship, and I'm thinking to gift her a honda civic car. I have no clue how to do it, and I am a little nervous about whether it will be a perfect gift for her. She is a brilliant student, and I want to do my best for her. Please advise me.

Hey as long as the transaction is structured properly. OP didn’t mention a spouse so I didn’t get into the weeds, but if a couple buy a $25K car for their niece, and one person writes the actual check from a joint account, then the 709 would still technically need to be filed to indicate the gift was split between spouses.

If the OP’s contemplated gift will be in excess of $17K and from a couple, I would suggest reading the gift-splitting rules in Part 1 of the instructions to Form 709, here: Instructions for Form 709 (2022) | Internal Revenue Service.

Even if you want to to the exact methods then I found 2 resource links that will help you out

https://getjerry.com/car-insurance/gifting-a-car-in-california

https://www.mountshine.com/gifting-a-car-in-california/

MalindaRayy

@Alex_Scope, any advice will add value and make me understand if it's a good idea or not. Currently, I'm planning to surprise them. Also, I know finances will be a major concern for him as he does not have a fixed job, but I think I can take care of it until he gets a stable job. I know I'm taking an emotional decision but let's see what happens next. I love her a lot, that's all I can say.

MalindaRayy

@anawilliam850 Hmm that's interesting, I was not knowing this, and thanks for sharing the resources. Over there, the DMV title is mentioned, and I have to transfer it. Is this necessary or she can drive the car in my name? Can you please guide me on this too?

anawilliam850

Hi! It's great that you're considering giving your niece a car as a gift. Here are some things to consider and steps to follow:

1. Check with your local Department of Motor Vehicles (DMV) to find out what documents are required to transfer the car's ownership. In California, the DMV requires a few documents to transfer the car's ownership, including the vehicle's title, smog certificate, odometer reading, and a bill of sale.

2. Obtain the vehicle's title from the seller. If you purchased the car, make sure you have the title in your name. If the car was a gift to you, you'll need to transfer the title to your name before transferring it to your niece.

3. Obtain a smog certificate. In California, a smog certificate is required for most vehicles. The seller must provide a smog certificate that is less than 90 days old at the time of the sale.

4. Determine how you will transport the car to your niece. If you're driving the car to her, make sure you have insurance coverage for the vehicle.

5. Write a bill of sale. A bill of sale is a legal document that records the sale of the vehicle. It should include the names and addresses of the buyer and seller, the vehicle identification number (VIN), the purchase price, and the date of the sale.

6. Transfer the title to your niece. To transfer the car's ownership to your niece, complete the necessary forms and submit them to the California DMV. Your niece will need to pay the necessary fees to register the car in her name.

As for whether a car is a good gift for your niece, it depends on her situation and needs. If she needs a car to commute to work or school, it could be a great gift. However, if she already has a reliable means of transportation, she may not need a car. Consider having a conversation with her to determine if a car would be a useful gift.

MalindaRayy

Ana thank you so much, you have helped me and answered my query that too in detail. Bless you.