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Illinois License Plate Lookup /Transfer a Car Title to a Family Member

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

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

Transferring a car title to a family member in Illinois involves officially assigning ownership of a motor vehicle from one relative to another. The transaction typically includes updating the vehicle’s title document and, if necessary, transferring or obtaining license plates for the new owner. Illinois law requires that the car title be properly transferred whenever a vehicle changes hands, even if the exchange occurs between close family members. This ensures accurate government records of ownership and facilitates correct insurance coverage.

Such transfers may be completed as gifts or as sales. When transferring a vehicle as a gift, the designated new owner assumes ownership without monetary exchange. In a sale scenario, the family member pays a mutually agreed-upon price. Regardless of the nature of the transaction, a valid title transfer needs to be executed in compliance with state regulations. If there are liens or outstanding loans on the vehicle, the lienholder’s authorization may also be required before any changes to the title can be made.

Eligible Family Members for Title Transfers in Illinois

Illinois recognizes transfers between various types of family members for reduced tax considerations and simpler administrative processing. Typically, these categories include:

  • Spouses and ex-spouses
  • Parents and children (including step-parents and step-children)
  • Grandparents and grandchildren
  • Siblings (including half-siblings and step-siblings under certain circumstances)

It is recommended to verify with the Illinois Secretary of State’s office whether your relationship to the intended transferee qualifies as an eligible family connection. In certain cases, additional documentation may be requested to prove the family relationship, such as birth certificates, marriage certificates, or adoption records. Individuals not falling under qualifying family categories may still complete a title transfer, but they might not be eligible for select tax exemptions or streamlined procedures the state provides for family-related title transfers.

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

Completing the Title Assignment

When you wish to give a vehicle as a gift, you must assign the title to the family member receiving the vehicle. Generally, you should:

  1. Sign the vehicle’s current title in the seller’s or owner’s field.
  2. Write “GIFT” under the sale price line or in the buyer’s field, as directed on the title form.
  3. Fill out all necessary personal information, including your name and the recipient’s name and address.

Be sure to avoid erasures or alterations. If mistakes are made on the title paperwork, you may need to request a corrected or duplicate title, which may involve additional fees.

Filing the Transfer Paperwork

Once the original owner has completed the relevant sections of the title, the recipient must prepare paperwork for the Illinois Secretary of State’s office. Required procedures usually include:

  • Completing an Application for Vehicle Transaction(s) (VSD 190).
  • Submitting the signed title and any applicable tax exemption forms.
  • Providing proof of identity and residency if requested.

If you are gifting the vehicle outright, you may qualify for an exemption from certain taxes, depending on your relationship. In many cases, spouses and immediate family members do not pay sales tax for gifted vehicles. Nevertheless, ensure all exemption documents or forms are included so that the transfer is processed correctly.

License Plate Considerations

If the original license plates are intended to remain with the vehicle, confirm whether state regulations allow the gift recipient to use the same plates. Alternatively, the new owner may apply for a new set of license plates. Proper registration must follow any change in ownership to ensure compliance with Illinois statutes.

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

Determining the Sale Price

In a sale scenario, the transferring party and the purchasing family member first negotiate a sale price. The amount should truthfully reflect the transaction, even if the price is set below fair market value due to family considerations. Under-reporting or misrepresenting the sale price may lead to complications or penalties.

Executing the Title Assignment

The current owner must fill out the required title fields:

  1. The seller’s name and signature.
  2. The buyer’s name, address, and the agreed-upon sale price.
  3. The date of the transaction.

Pay close attention to each field in the title document to avoid typographical errors. Any alterations can result in processing delays or the rejection of the title form.

Submitting the Transfer of Ownership Paperwork

The buyer is responsible for submitting:

  • The properly signed and completed title.
  • An Application for Vehicle Transaction(s) (VSD 190).
  • Payment for any applicable taxes, title fees, and license plate fees.

The state’s standard tax rate may apply unless the relationship meets criteria for partial exemptions. To qualify for such benefits, the buyer may be required to complete additional documentation, so it is advisable to consult with the Illinois Secretary of State’s office about any applicable tax reductions.

Finalizing License Plates and Registration

When buying a car from a relative, the new owner must either transfer existing license plates—if permitted under state rules—or purchase new license plates during the transaction process. Ensuring continued compliance with insurance laws is crucial, as vehicles in Illinois must always carry valid auto insurance coverage matching the registered owner.

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

Ensuring that all required documents are organized and accurate is vital for a smooth and timely title transfer. Commonly requested documents include:

  • A valid, signed vehicle title: This must be free of errors or completed with authorized corrections.
  • Application for Vehicle Transaction(s) (VSD 190): This form captures essential information, such as the buyer’s name, address, and intended usage of the vehicle.
  • Proof of identification: Both seller and buyer may need to present valid photo identification (e.g., driver’s license or state ID).
  • Proof of residency: If registering the vehicle at a new residence, the new owner may need to provide proof, such as a utility bill or lease agreement.
  • Tax exemption or sales tax documentation: If claiming a full or partial exemption due to family relationship, an RUT-50 Private Party Vehicle Use Tax Transaction form or similar documentation may be involved.
  • License plate or registration forms: Depending on whether existing plates will transfer or new plates are requested, additional forms might be required.

It is recommended to confirm all prerequisites with the Illinois Secretary of State’s office, especially if there are any special circumstances like a power of attorney or a vehicle inherited from a deceased family member.

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

Although certain aspects of the title transfer may be initiated remotely, Illinois still requires the original signed title to process ownership changes. However, the Illinois Secretary of State’s online services can streamline parts of the process:

  1. Checking License Plate Availability: Prospective owners may review available specialty or standard license plate configurations online.
  2. Completing Preliminary Forms: Many forms, including the Application for Vehicle Transaction(s) (VSD 190), are obtainable and downloadable via the Secretary of State’s website. Completing these forms prior to visiting any facility can help speed up in-person procedures.
  3. Scheduling Appointments: While not always mandatory, it is recommended to check if your local Secretary of State facility offers online appointment scheduling to reduce wait times.

After preparing the required documents, the buyer or seller must typically appear in person to finalize the transaction and submit the signed original paperwork. Some third-party service providers can aid in Title and Registration transactions, but it is essential to verify they are recognized by Illinois authorities.

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

Vehicle title and registration fees can vary with each situation. The following outline offers a general overview:

  • Title Fee: Typically a set amount is charged by the Illinois Secretary of State for processing the change of ownership. This amount may be updated periodically, so confirm the current fee before proceeding.
  • Transfer of Registration Fee: If the existing license plates and registration are being transferred, there may be a nominal charge. Should new plates be requested, an additional cost will apply.
  • Sales/Use Tax: In Illinois, the buyer is often responsible for paying a Vehicle Use Tax. However, family transfers may qualify for reduced rates or exemptions, especially for spouses, parents, or children.
  • Late Fees: If the transfer of title is not completed within a specific time frame (commonly 20 days from the date of sale/gift), a penalty fee may be imposed on the new owner.

In some cases, local municipalities add their own tax or fees. It is advisable to maintain a record of the exact date of transfer and gather all paperwork promptly to avoid potential fines or complications.