DMV Title Transfer After Death in Oregon: Form 516 and Fee Schedule

Transferring a vehicle title after a death in Oregon isn't the simple process most families expect. The method depends on whether the title includes survivorship rights, whether the estate goes through formal probate or uses the Simple Estate Affidavit, and — since House Bill 3991 — how fuel-efficient the vehicle is. Yes, the title transfer fee now varies based on miles per gallon.

Three Paths to Transfer a Vehicle Title

Path 1: Survivorship on the Title

If the vehicle was co-owned and the title explicitly includes survivorship rights, the transfer is straightforward. The surviving owner submits:

• Completed Application for Title and Registration
• The original vehicle title
• A certified death certificate
• The applicable transfer fee

No probate involvement needed. The surviving owner assumes sole ownership.

Path 2: No Survivorship, Small Estate (Form 516)

When the vehicle lacks survivorship rights and the estate qualifies for the Simple Estate Affidavit (total estate under $275,000), the heirs use DMV Form 516 — the Inheritance Affidavit.

This notarized form must be signed by all legal heirs as defined by ORS Chapter 112, each explicitly releasing their claims to a designated party. If there are four heirs, all four must sign. One missing signature and the DMV rejects the form.

Submit Form 516 with the original title, a certified death certificate, and the transfer fee. The designated heir receives a new title in their name.

Path 3: Formal Probate

If the estate goes through formal probate, the appointed personal representative needs Letters Testamentary from the circuit court to sign over the vehicle title. The DMV requires a copy of the Letters along with the standard title transfer documents.

This means the vehicle can't be transferred until the court formally appoints the personal representative — which can take several weeks after filing the probate petition. During this period, the vehicle sits in the decedent's name.

Oregon's Tiered Fee Schedule (HB 3991)

Oregon's vehicle title transfer fee is no longer a flat rate. Under House Bill 3991, fees scale based on the vehicle's fuel efficiency — part of the state's strategy to fund the State Highway Fund as fuel tax revenue declines with increasing electrification.

An executor transferring a Tesla or other electric vehicle faces nearly double the fee of a standard gasoline vehicle. For estates with multiple vehicles — not uncommon — these fees add up and should be factored into the estate's administrative expense budget.

Vehicles enrolled in OReGO, Oregon's road usage charge program, follow a separate fee structure since they're already paying per-mile charges in lieu of fuel taxes.

What About Estate Tax?

Vehicles are included in the gross estate valuation for Oregon estate tax purposes. A car worth $35,000, a boat worth $20,000, and an RV worth $45,000 add $100,000 toward the $1 million threshold.

Use the fair market value at the date of death — not the Kelley Blue Book retail value or the purchase price. For common vehicles, the NADA guide or online valuation tools provide defensible values. For classic cars, collector vehicles, or custom builds, get a professional appraisal.

The vehicle's value at date of death also establishes the heir's stepped-up basis. If the heir later sells the vehicle for more than this value, they owe capital gains on the appreciation. If they sell for less, they can claim a loss.

Common Mistakes

Not checking survivorship language on the title. Many couples assume joint ownership means automatic transfer. It doesn't — the title must explicitly state "with right of survivorship." Without that language, you're on Path 2 or 3.

Trying to transfer before getting Letters Testamentary. In a formal probate, the DMV won't process a transfer without the court-issued Letters. Don't make the trip until you have them in hand.

Forgetting to update registration. A title transfer doesn't automatically update the registration. You'll need to register the vehicle in the new owner's name and pay the applicable registration fee, which follows the same fuel-efficiency tier structure.

Driving with expired registration. If the decedent's registration expires during probate, the personal representative may need to renew it in the estate's name to keep the vehicle legally operable — especially if it's needed to transport family or manage estate affairs.

The Oregon Final Tax & Estate Tax Guide includes the vehicle transfer checklist alongside all other asset transfer procedures an executor needs to handle after a death in Oregon.

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