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Cars into Revocable Living Trust
Posted by: Geraldson, February 5, 2015 04:24PM
I am wondering about putting cars into our Revocable Living Trusts (separate trust, each, for wife and myself). We have two cars. Currently both are in my name only, mainly because I am the car buyer and my wife has no interest in going to the car dealer to sign papers etc. But I realize that if (when) I die, the cars will have to go through probate via my pour over will, before they can get into my trust. I live in Pennsylvania. I probably would not change current vehicles, but both will be replaced within a few years so that would be a good time to deal with this.

The alternative is to put the cars in joint name. If/when we BOTH die, yeah the same problem exists. But at least for the surviving spouse, this would eliminate the probate issue. I seem to recall, however, that this increases liability as both become liable for the tort of one. Although practically we're married for years and if one gets sued the other will feel it too.

Any info or suggestions on this? Will PA even allow cars into RLTs without major hassles? Will insurers charge (much) more? I've heard that some states even have the ability to do a beneficiary designation for a car title.

Re: Cars into Revocable Living Trust
Posted by: tomd37, February 5, 2015 09:54PM
Cannot you title the cars in both your names so when one passes it remains the titled property of the other? Just thinking out loud here.

Tom D.

Re: Cars into Revocable Living Trust
Posted by: Geraldson, February 5, 2015 10:09PM
Yes I can, but see above for reasons I did not want to in the past. I think that's the solution, however, going forward as I replace our current vehicles.

Re: Cars into Revocable Living Trust
Posted by: Sven, February 28, 2015 03:12AM
It may be worth looking into what PA state law say about "abbreviated ways"of quickly re-titling cars without having to go the full probate route, and more importantly, not getting hung up in tax waivers should there be a state estate tax and your estate is large enough to run afoul of it. Once can wait a long, long time for tax waivers.

I am fairly sure some states allow for something quick and relatively easy. So call your PA Motor Vehicle Office and see what they have to say.

Re: Cars into Revocable Living Trust
Posted by: sandy20020, March 6, 2015 11:45AM
A friend told me that his cars titled in the Revocable Living Trust created insurance problems and ended up changing cars out of the Trust! His agent had told him he would need a commercial policy instead of a personal policy.

Re: Cars into Revocable Living Trust
Posted by: Sven, March 8, 2015 10:09PM
Interesting insurance comment. The benefit of cars being owned by a Revocble Trust may minor when compared to one unanticipated liability insurance problem, let alone any premium differential.

Re: Cars into Revocable Living Trust
Posted by: Benn, April 1, 2015 12:36AM
See the following, which you might find informative:

[www.dmv.state.pa.us]




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