Gifting a Vehicle in Alaska - Title Transfer Rules
Gifting a car to a family member, friend, or charity in Alaska can be a generous and thoughtful gesture, but it comes with legal responsibilities—especially when it comes to transferring the vehicle title. Ensuring the transfer is properly handled helps both the giver and the recipient avoid fines, delays, or future liability issues.
Understanding Alaska's Vehicle Gift Transfer Rules
When you give a vehicle as a gift in Alaska, the process is similar to a standard vehicle title transfer, but with a few critical differences—particularly concerning taxes and how the transaction is recorded on the title.
1. Verify Ownership and Title Status
Before initiating a gift transfer:
- Make sure you are the legal owner of the vehicle.
- The title should be free of liens. If there's a loan on the car, it must be paid off and a lien release must be obtained.
2. Complete the Title Assignment Correctly
On the back of the title, you must:
- Enter the word “GIFT” in the purchase price section.
- Include both the giver’s and recipient’s legal names and addresses.
- Provide the odometer reading if the vehicle is under 10 years old.
- Sign and date the title in the appropriate sections.
3. Submit the Required Paperwork
The recipient of the gifted vehicle must submit the following to the Alaska DMV:
- The signed vehicle title
- A completed Application for Title & Registration (Form 812)
- Any supporting documentation, such as the lien release, if applicable
4. Tax Considerations When Gifting a Car
In Alaska, vehicle gifts are generally exempt from sales tax. However:
- The recipient should still be prepared to pay title transfer fees, which vary depending on the vehicle type and whether expedited processing is requested. Learn more about title transfer fees.
- Ensure “GIFT” is clearly written on the title and paperwork to avoid tax confusion.
Gifting to Family vs. Non-Family Members
Alaska does not treat gifts to family members and non-family members differently in terms of DMV processing, but gifting to a family member may have estate or income tax implications, particularly for high-value vehicles. Consult a tax advisor if needed.
What If the Title Is Missing or Damaged?
If the title is lost or unreadable, you must first apply for a duplicate Alaska vehicle title before gifting the car.
Common Mistakes to Avoid
- Forgetting to write “GIFT” on the title: This can cause the DMV to assume a sale occurred, potentially triggering tax obligations.
- Omitting the odometer reading: Federal law requires this for most vehicles under 10 years old.
- Not submitting the transfer within 30 days: The recipient should file the title transfer promptly to avoid late fees and ensure legal ownership.
After the Transfer
Once the title is transferred, the recipient becomes the legal owner. They must:
- Obtain insurance coverage immediately
- Consider reviewing Alaska’s vehicle equipment requirements to ensure the car is road-legal
- Register the vehicle and receive new plates if necessary
Related Resources
For more guidance on related processes, check out:
- How to Title a Vehicle in Alaska
- Alaska Title Transfer Fees
- How to Replace a Lost or Damaged Alaska Title
- Vehicle Equipment Requirements
- Alaska Lien Release Guide
Giving a vehicle as a gift in Alaska can be a seamless and rewarding process when all paperwork is properly prepared and filed. Always double-check the documentation, and when in doubt, contact the Alaska DMV for assistance.