11.190 Trust Transfers (VC §5600)

Establishment of a trust commits the property or assets of an individual(s) to a trustee for use or safekeeping.

Definitions:

Beneficiary—The one for whose benefit a trust is created.

Co-trustees—Two or more persons who are entrusted with property for the benefit of one or more persons.

Settlor—The term “settlor” is frequently used instead of “trustor.”

Successor Trustee—A trustee who follows or succeeds an earlier trustee and who generally has all the powers of the earlier trustee.

Trust—An arrangement where property is transferred with an intention that it be held and administered by a trustee for the benefit of some third party or parties. The trust is the registered owner.

Trustee—The person appointed or required by law to execute a trust. Generally, the same person may be both a beneficiary and a trustee; however, the sole beneficiary of a trust cannot be the sole trustee for the trust.

Trustor(s)—The one who creates, or whose confidence creates, a trust.

Transfer to a Trust—Transfers from an individual(s) to the trust (of/for the same individual(s) are handled as regular transfers.

In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the applicant must submit:

The California Certificate of Title with the names of the trust and trustee(s) shown in the new registered owner section on the back of the title. Examples:

Jones Family Trust
John Jones, Trustee
Address of Trustee

or

John Jones Family Trust
John M./Mary S. Jones, Trustees
Address of Trustees

• The signature of the trust containing the trust name and countersignature by the trustee. The endorsement John Jones Family Trust by J. Jones is acceptable for either. Only one trustee signature is required to put the vehicle into the name of the trust even if the trustee names are joined by “and” (designated by “/”).

Example: John Jones Family Trust by Mary S. Jones, Trustee.

• A Statement of Facts (REG 256) form for smog/tax exemption.

Transfer From a Trust—In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the applicant must submit:

Documents with the releasing signature for the trust containing the trust name and countersignature of the trustee.

Example: John Jones Family Trust by Mary S. Jones, Trustee

If	Then
More than one trustee name is shown without “or” or “and” (represented by a “/”) between the trustees’ names	Each trustee must release on the title.If only one trustee release is provided, a Statement of Facts (REG 256) form is required explaining the reason.
The trustee signing is not the trustee named on the title	A REG 256 is required from that trustee stating their appointment as a successor trustee by the trustor or the retiring trustee.
A trustee releases interest on the title for a vehicle which is not registered to a trust	Ownership of the vehicle is determined by the deceased owner’s will as contained in the trust document. Copies of the trust agreement and a Vehicle/Vessel Transfer and Reassignment Form (REG 262) to complete the chain of ownership may be required.
No trustee name is shown on the title	A REG 256 is required from the trustee attesting to their appointment as trustee or successor trustee by the trustor.

• If the transaction involves family members that would otherwise be exempt from smog, a REG 256.
• Use Tax or, in lieu of used tax, a Certificate of Vehicle, Mobilehome, or Commercial Coach Use Tax Clearance (CDTFA 111) form issued by the California Department of Tax and Fee Administration and a REG 256.

Transfers of vehicle ownership from the registered owner to their revocable trust or specific family members cannot be completed when unpaid parking and/or toll violations are on the vehicle record. Transfers out of a revocable trust are not impacted.

All violations shown on the record must be cleared by the issuing parking/toll agency or paid to DMV and all other required fees and documents submitted to complete the transfer of ownership

Note: Family members affected are the registered owner’s natural or legally-adopted parent, grandparent, child, grandchild, spouse, domestic partner, and sibling.

Business Partner Automation Program Participant Procedures

When the application contains a REG 256 declaring a family transfer exemption from use tax and/or a smog inspection, or the transfer is to the revocable trust of the current registered owner, and unpaid parking and/or toll violations are on the vehicle record, submit the application to DMV for processing.