How To Donate A Car To Family Member In Louisiana

How To Donate A Car To Family Member In Louisiana

Many of us dream of one day handing over the keys to a loved one’s dream car, something shiny, fully restored, and ready to drive. While that kind of surprise may not always fit the budget, gifting an older, reliable vehicle to a family member who needs transportation is still a meaningful and generous gesture. In Louisiana, the process of donating a car to a family member is fairly straightforward, as long as you follow the proper steps.

To begin, the donor and recipient must complete an Act of Donation, which officially confirms the vehicle is being given as a gift, not sold. You will also need to transfer the vehicle’s title, which requires both parties to sign in front of a notary public or two witnesses. After that, the recipient must complete a Vehicle Application form to register the vehicle in their name. Finally, the Louisiana Office of Motor Vehicles (OMV) must be notified through an online Notice of Transfer.

Whether you are helping a teenager get their first car or offering support to a relative in need, donating a vehicle is a generous act that can make a big difference. In this guide, we will walk you through every step to ensure your gift is legal, properly documented, and stress-free. From paperwork to title transfer, here is everything you need to know about how to donate a car to a family member in Louisiana.

READ ALSO: How To Donate Old Car

Why Donate a Car to a Family Member?

Donating a car to a family member is a kind and practical way to help someone close to you. Here are some common reasons people choose to do it:

• It Helps Someone You Care About

If a family member needs reliable transportation for work, school, or errands, giving them a car can make life easier and reduce their financial burden.

• You Can Skip the Sales Tax

Louisiana lets you transfer a car to an immediate family member without paying sales tax, as long as you file the correct forms. This can save money for both of you.

• You Keep the Car in the Family

If the car still runs well or has sentimental value, donating it ensures it stays with someone you trust.

• It Makes Sense for Lower-Value Cars

If the car is not worth much on the market, donating it to a family member can be more meaningful than selling it for a low price.

• It’s Easier Than Selling

Selling a car takes time, effort, and negotiation. Donating it to a family member skips all that and keeps things simple and personal.

Why Do I Need Legal Proof of Donation in Louisiana?

Having legal proof of donation, like a notarized Act of Donation, helps protect both the person giving the vehicle and the one receiving it. This form clearly states that the car was given as a gift, not sold, and that no money changed hands. It confirms the donor’s intent and shows that the recipient is now the rightful owner.

While Louisiana does not always require this form for every type of donation, it is still a smart step to take. A notarized Act of Donation helps prevent future misunderstandings or disputes over ownership. If questions ever come up, such as from the OMV, insurance companies, or even between family members, this document can help clear things up quickly by showing the transfer was intentional and legal.

Does Gifting a Car Affect My Taxes?

In most situations, gifting a car to a family member will not have a major impact on your taxes. You will not be able to claim a tax deduction unless the vehicle is donated to a qualified charity or religious group.

However, there is a federal gift tax to be aware of. As of 2024, if the car you are giving is worth more than $18,000, you may be responsible for paying a gift tax. In some cases, the recipient might also be required to pay taxes on the value of the gifted vehicle.

If the car’s value is below the $18,000 limit, no federal gift tax applies, and the transfer should not affect your taxes at all. Still, it is a good idea to consult a tax professional if you are unsure or if the vehicle has a high value.

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

Giving a car to a family member in Louisiana can be a generous way to help someone you care about. The process is fairly simple, but there are a few legal steps you need to take to make sure everything is done the right way. Here is a step-by-step guide to walk you through it.

Fill Out the Title

• Find the car’s original title document.
• The person giving the car fills in the seller section on the back.
• The person receiving the car completes the buyer section.
• Use black ink and write full legal names, no nicknames.
• Where it asks for the sale price, write “gift.”

Sign in Front of a Notary or Witnesses

• The donor must sign the title while in the presence of:
• A notary, or
• Two witnesses (one of whom must later sign a special witness acknowledgement form in front of a notary).
• This step ensures the transfer is legally recognized.

Complete the Necessary Forms

• Fill out and notarize an Act of Donation of a Movable form.
• Complete a Vehicle Application (Form DPSMV 1799) to reissue the title.
• If there is a lien listed, include a lien release from the lender.
• If the car is less than 10 years old, include an Odometer Disclosure Statement.

Submit a Notice of Transfer

• Go to the Louisiana OMV website and file an online Notice of Transfer.
• This step releases you from future responsibility for the car.

Pay Transfer Fee and Register the Vehicle

The recipient will need to:

• Show proof of car insurance.
• Pay the title transfer fee at the OMV.
• Register the car under their name.

Remove the License Plates

• Take off your license plates from the vehicle.
• Either destroy them or return them to the OMV.

How to Transfer a Vehicle Title in Louisiana for a Family Car Donation

When giving a car to a family member in Louisiana, the vehicle’s title must be properly transferred to make the donation legal. Here is how to handle the title transfer step by step. Start by locating the title. On the back, the person donating the car fills out the seller’s section, and the person receiving the car completes the buyer’s section. Be sure to use a black pen and write full legal names, no nicknames.

The donor must sign the title with either two witnesses or a notary present. If only witnesses are there, one of them must later sign an Acknowledgement of Witness in front of a notary to make the signature official.
In the box asking for the sale price, simply write “gift” to show that no money was exchanged. In addition to the title, Louisiana law requires a few more steps:

• Get a lien release if the title shows a loan that has not been cleared.
• Fill out the Vehicle Application form to update the title in the recipient’s name.
• Complete and notarize an Act of Donation of a Movable form.
• Submit an Odometer Disclosure Statement if the vehicle is under 10 years old.
• File an online Notice of Transfer through the Louisiana OMV website.
• Pay the required title transfer fee.
• Register the vehicle under the new owner’s name with valid insurance.

READ: How To Donate Old Car

Frequently Asked Questions: Donating a Car to a Family Member in Louisiana

 Can I Just Hand Over the Keys and Title to My Relative?


• Not quite. You need to follow the legal process, including signing the title properly, filling out the necessary forms, and filing a Notice of Transfer with the Louisiana OMV.

Do I Need to Pay Taxes When Gifting a Car to a Family Member in Louisiana?


• Usually, donating a car to the family isn’t taxed by the state. But if the car’s value is over the federal gift tax limit ($18,000 as of 2024), the giver might have to file a federal gift tax return.

Do I Need to Notarize the Act of Donation?


• Yes, the Act of Donation must be signed in front of a notary to be official in Louisiana.

Is a Bill of Sale Required If I Am Gifting the Car?


• No, you don’t need a bill of sale for a gift. Instead, you’ll fill out and notarize an Act of Donation of a Movable form.

Can I Keep My License Plates?

• 
No, you’ll need to take off your license plates and either destroy them or send them back to the OMV.

Can I Donate a Car to Someone Under 18?

• 
Typically, a minor can’t have a car title in their name. A parent or guardian may need to be listed as the co-owner instead.

What If the Car Still Has a Lien on It?

• 
You can’t donate a car if there’s an unpaid lien on it. You’ll have to get a lien release from the lender before transferring the title.

Who Pays the Title Transfer Fee?


• Usually, the person receiving the car pays the title transfer and registration fees.

Donating a car to a family member in Louisiana is pretty simple if you follow the right steps. Making sure you have all the necessary paperwork and know the rules can help you avoid delays and complications. For an easier experience, consider reaching out to the Louisiana OMV or getting advice from a legal expert. Visit the official website for more information. I hope the provided information is helpful. Share your thoughts below in the comment section.

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