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The process will involve performing a title transfer, very similar to when you originally purchased the vehicle and had the title transferred over to your name, except this time, no smog inspection will be required and no Use Tax will be collected from the buyer (i.e. the newly added 2nd owner, your spouse).
Fill out the Arizona non-probate affidavit form(Form 32-6901), which transfers ownership to the applicant. The deceased persons details must be included as outlined in the form. Notarize the signature by signing it before an Arizona MVD agent or a certified notary.
You are free to sell or give away the car, or name someone else as the beneficiary. In Arizona, Kansas, Missouri, and Nevada, if you own the vehicle with someone elsesay, your spouseyou can still designate a beneficiary. The beneficiary will inherit the vehicle only after both you and the other owner have died.
Once you have your vehicles title, you will need to fill out the MVDs Beneficiary Designation form found at .azdot.gov/docs/mvd-forms-pubs/96-0561.pdf. This form will allow the sole owner of an Arizona vehicle to transfer the title of the vehicle to the person(s) designated in the form upon death.
Write the names of the first beneficiary(ies) you would like to receive your benefit after you die. You may name an individual(s), entity (such as a charity, business, religious organization, funeral home, etc.), trust, or estate. You may name more than one.
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People also ask

Yes, gifting a vehicle in Arizona requires both parties to complete the Title and Registration Application and submit a signed title without listing a purchase amount.
In the event of the death of either party, the survivor will need to provide a death certificate for the deceased owner and then may sign alone when selling the vehicle or when applying for a certificate of title in the surviving owners name.
Forms for Designations We recommend that you designate beneficiaries to receive your life insurance benefits. However, if you are happy with the order of precedence(PDF file), you dont have to do anything.

arizona motor vehicle beneficiary form