Selling Vehicles, Boats, and Trailers from a Michigan Estate: Title Process + Tax
Vehicles, boats, snowmobiles, and trailers are some of the simplest assets to liquidate from a Michigan estate, until you try to do it. This guide walks through title transfer for each common vehicle type.
Three Paths to Transfer a Michigan Vehicle Title
Path 1 – Surviving Spouse (sole heir, vehicles under $60K combined): spouse takes title, death certificate, completed Certification from Heir to Vehicle (TR-29), ID to SOS branch. No probate required. Path 2 – Small Estate (under $27K net): use small estate affidavit (PC 556) through probate court. Path 3 – Full Probate: Personal Representative uses Letters of Authority to sign title.
Boats, PWCs, Snowmobiles
- Boats 20+ feet require Michigan title (shorter use registration only)
- PWCs (jet skis) titled like boats
- Snowmobile titles required for model year 1999 and newer
- ORV titles follow similar rules
- Boat trailers titled separately
- Outboard motors not separately titled but document on bill of sale
Sales Tax
Michigan charges 6 percent use tax paid by buyer at SOS branch. Transfers from estate to immediate family member (spouse, parent, child, grandparent, grandchild, sibling, in-law) are generally exempt. Sales to unrelated third parties taxable at fair market value per SOS reference guides.
Step-Up in Basis
Under IRC Section 1014, inherited vehicles receive step-up to fair market value at date of death. Document with photos, mileage, condition notes, KBB/NADA values from date of death.
Common Title Transfer Mistakes
- Signing the deceased’s name on the title
- Selling before Letters of Authority issued
- Forgetting surviving spouse exception
- Letting registration lapse, then driving
- Skipping bill of sale (Michigan requires odometer disclosure)
- Forgetting to remove license plate (plates stay with seller)
When Vehicles Are Tied to the Home Sale
Offer Now Michigan purchases inherited homes with vehicles and equipment in place. We coordinate removal as part of closing. Call (810) 547-1135.