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tl;dr: You may end up paying less in annual registration fees if you process the transfer as a gift and provide a market value lower than the DMV-pegged value.
How Do I Transfer a Car Title to a Family Member in California? Step 1: Gather the Necessary Documents. Step 2: Complete the Title Transfer Form. Step 3: Complete a Statement of Facts Form (If Applicable) Step 4: Submit the Transfer Application to the DMV. Step 5: Pay the Necessary Fees. Step 6: Receive the New Title.
A family member gave me a car. Do I have to get a smog inspection? No.
To transfer a vehicle between family members, submit the following: The California Certificate of Title properly signed or endorsed on line 1 by the registered owner(s) shown on the title. Complete the new owner information on the back of the title and sign it.
The DMV provides the REG 5 form to make vehicle transfer without probate easier. this form is only for estates that do not exceed $166,250 in personal and real property. this form is only available to use if 40 days have elapsed since the date of death.
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The California DMV charges a specific fee for the transfer of title at the time of sale, purchase, or gift of a vehicle, which the new owner must pay. Currently, the fee is $15. Sales tax, registration fees, and other charges may also be added to purchasing a new vehicle.
Once you start the online Title Transfer process, a DMV Virtual Assistant will let you know if you also need: Smog certification. Use tax and/or various other fees. Application for Replacement or Transfer of Title (REG 227) form.

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