What Does the New Vehicle TOD Law Mean for My Estate Plan in South Carolina?
As of July 1, 2025, South Carolina residents have a new tool for estate planning—the ability to add a Transfer on Death (TOD) designation to their vehicle titles. This simple change can help families avoid probate and ensure a smoother transfer of ownership after death.
A TOD designation works much like a beneficiary designation on a bank account or life insurance policy. While you are living, you remain the full owner of your vehicle. Upon your death, ownership automatically transfers to the person or people you’ve named on the title—without the delays, costs, and complications of probate.
To set up a TOD designation on your vehicle, you must complete the TOD-1 form, which is available on the South Carolina DMV website. You’ll also need to submit a Form 400, your current title, and a $15 fee. Once processed, the DMV will issue a new title reflecting the TOD designation.
It’s important to note a few key rules:
Only individuals—not businesses or trusts—can add TOD beneficiaries.
All current owners of a vehicle must agree to the designation and sign the form. For example, if you and your spouse co-own the car, both must sign.
Vehicles with outstanding loans or liens typically need to be paid off before adding a TOD designation, unless the lienholder agrees.
Jointly owned vehicles must be titled with “or” between the owners’ names (creating a right of survivorship) in order to use TOD. If the title uses “and,” probate will still be required.
The person you name as your TOD beneficiary has no rights or control over the vehicle during your lifetime. Ownership only shifts upon your passing. If you name multiple beneficiaries, the DMV will title the vehicle jointly in their names with “and” as the connector—meaning if one passes away, their share will go through probate.
After your death, the beneficiary (or beneficiaries) must submit the title, a $15 fee, and your death certificate to the DMV to complete the transfer. If multiple owners are listed on the title, the transfer won’t occur until all owners are deceased.
This new law offers South Carolinians a straightforward way to ensure their vehicles pass smoothly to loved ones. However, it’s important to remember that vehicles are just one piece of your overall estate plan. Adding a TOD beneficiary may not be the best option in every situation, especially if there are multiple heirs, complex family dynamics, or larger assets to consider. Consulting with an experienced elder law attorney can help you determine whether a TOD designation fits into your broader estate planning goals and ensure that your plan works seamlessly to protect your family and your wishes.
