Tesla Registration under Living Trust

[alankaar]

Hi,

My new Tesla Model 3 is registered under our Living Trust name. However the Motor Vehicle Purchase Agreement lists only the name of the Living Trust and does not list the names of the trustees (my wife and I). We had provided this information when we filled out the order online. My other accounts (e.g., home) that are under the Living Trust have "XXX Living Trust ABC (Trustee) and XYZ (Trustee)".

I am applying for the California CAV decals and the form asks for the full names of the owner and co-owner. I am not sure how to handle this when our names (as trustees) are appearing on the Motor Vehicle Purchase Agreement.

Has anyone else experienced this?

Thanks.

 

[RayK]

I'm not a lawyer, nor a trust administrator, but I do have some experience with living trusts (my family and my parent's). I would say that you should register your car in both yours and your wife's name with the DMV and then list your car as an asset within your trust.

If you need the name of a family trust advisor, PM me. He's located in Almaden Valley.

 

[ATPMSD]

Also not a lawyer, but my Mom had a Trust. All of her bank accounts listed the full legal name of the Trust, but as it was a living Trust the bank required her SSN. Any bank account she had that listed her name directly was not covered by the Trust and would have to go through Probate. Referencing an asset in the Trust, that is not actually held by the Trust, may or may not work depending on where you live. Definitely call your lawyer.

 

[UncertainTimes]

I forget the exact reason but my lawyer did not recommend titling our vehicles under the trust name.

 

[ATPMSD]

I forget the exact reason but my lawyer did not recommend titling our vehicles under the trust name.

Could be something as simple as it might then be considered a business asset instead of personal. But again, domain of the lawyers.

 

[goin2drt]

I forget the exact reason but my lawyer did not recommend titling our vehicles under the trust name.

Same here. We just finished our family trust and our lawyer recommended not putting cars in the trust.

 

[jjrandorin]

I forget the exact reason but my lawyer did not recommend titling our vehicles under the trust name.

I got a living trust for the first time about 3 years ago, and the lawyer I used also said that, but I also do not remember what the reasoning was. I am in CA, not sure where you are. There must be some common reason why.

 

[Tam]

I got a living trust for the first time about 3 years ago, and the lawyer I used also said that, but I also do not remember what the reasoning was. I am in CA, not sure where you are. There must be some common reason why.

I think the rationale is: If there's a car accident lawsuit, the living trust is now readily named and the whole life asset in the living trust is readily exposed.

 

[HeatproofGenie]

I think the rationale is: If there's a car accident lawsuit, the living trust is now readily named and the whole life asset in the living trust is readily exposed.

This. We also have a trust and this is the reason why a vehicle should not be under said trust. Forgot until now though Tam, hah.

 

[M3BlueGeorgia]

Hi,

My new Tesla Model 3 is registered under our Living Trust name. However the Motor Vehicle Purchase Agreement lists only the name of the Living Trust and does not list the names of the trustees (my wife and I). We had provided this information when we filled out the order online. My other accounts (e.g., home) that are under the Living Trust have "XXX Living Trust ABC (Trustee) and XYZ (Trustee)".

I am applying for the California CAV decals and the form asks for the full names of the owner and co-owner. I am not sure how to handle this when our names (as trustees) are appearing on the Motor Vehicle Purchase Agreement.

Has anyone else experienced this?

Thanks.

Don't do it

Dealing with car registrations in Living Trusts just isn't worth it.

Both my wife's parents had Living Trusts and they were both a total PITA for her on their death.

Why would you do this for a car anyway?

Just adds hassle without any obvious benefit.

 

[ATPMSD]

I think the rationale is: If there's a car accident lawsuit, the living trust is now readily named and the whole life asset in the living trust is readily exposed.

UnlIkely. Again, not a lawyer, but in a living Trust the protection offered by the Trust does not become in force until you die, up until then the assets in the Trust remain under full control of the Trustee and are available to creditors and to the court. When you die assets in the Trust are no longer considered part of the Estate. So by keeping the car outside the Trust, if your owe money on your car when you die, the creditors cannot collect the balance from the Trust.

As I understand the general guideline, all free and clear assets, brokerage and bank accounts should be in the Trust. Anything on which you have lease or a loan, or a potential liability, should be outside the Trust with the exception of Real Estate.

The primary goal of a Trust is to avoid probate in States which have unfavorable probate laws.