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Transferring Car Title into Revocable Trust Might Not Be a Good Idea

– Today, we’re going to discuss
putting your car or truck into trust and whether or
not you actually should. (air whooshing) Welcome to Two-Minute Tuesday where I attempt to discuss
an estate planning topic in two minutes or less, so let’s get started
and jump right in. This is the third video in
a little series we are doing on funding your
revocable living trust. If you have watched
any of my videos or have visited with me, you know that over and
over and over again, I state that all of your assets must be in the
name of your trust so that your trust
is properly funded and when the time comes,
your family avoids probate. Motor vehicles, however,
present an interesting dilemma, first, it’s relatively
easy to transfer car titles in the state of Oklahoma, second, we live in a
very litigious society. I always tell people that if
you get into a car accident, and they see that
your car is titled in the name of the trust, that might automatically
prompt some people to file a lawsuit because
your car is owned by a trust. People see the word trust
in a title, a car title, and they automatically
think that the estate must be worth
millions of dollars, and you know from
watching our videos that this is simply not true and that a revocable
living trust is one of the most
efficient ways to handle your estate planning. So my answer to putting
cars into trust is, well, it depends. First, let’s look at
how to transfer a title to a motor vehicle in Oklahoma. In Oklahoma, when a
vehicle is sold, gifted or changes ownership in some
other way, like an inheritance, the title needs to be changed
to that new owner’s name. Now, there are specific
steps that need to be taken to transfer a car
title in Oklahoma, and they vary depending on
the situation, of course. If you’re selling
a car or a truck as part of an estate plan, you’ll need to
complete the title and sign it in front
of a notary public, provide the buyer the
current registration, give the buyer a lien release, and also write the odometer or the number of miles
on the actual title, and also make certain
that the purchase price is included on that title. Another safeguard is
you should also notify the state of Oklahoma that
you actually sold the vehicle. I think it costs about $10, but that’s a really
good safeguard. Now, if you’re transferring
a car to a family member as part of an estate, the process is basically
the same as the steps that I just outlined above, however, if it is going to
a qualifying family member, like a spouse or a child, then you’ll need to
complete a family affidavit so that they don’t have to
pay sales tax on the transfer. Now the inheritance process
is a little different and adds a little bit
of a twist of sorts. You cannot transfer the title
to a car left to you in a will before the will is
actually probated. You’ll need to start the probate and have letters
of administration. You will need to give a copy
of the death certificate and the letters of
administration to the tag agency for them to transfer title, however, if there’s not a will that specifically
distributes the car and you are the only person
claiming an interest, like your son, a
daughter or a spouse, then a tag agency in Oklahoma
should be able to assist you in transferring that car from
the name of your loved one to your name, so long as
you have a death certificate and you fill out the
proper affidavits. So, the technical answer
is put all of your assets in the name of your
revocable living trust including your cars and trucks,
all of your motor vehicles. The reality is it
depends on the situation. So, sit down with an estate
planning attorney, like me, and discuss your
specific situation and what you have going on. If you have a classic
car or a high end car whose value, the value of
that car goes up every year, then, you probably want
to put it into your trust, however, if it’s
your daily driver that lost a third of its value when you drove it off
the dealership lot, then maybe you want to think
about putting it into trust. If you’re getting value today, then please hit the
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time we post a new video. If you have any questions, then please download our Estate
Planning Strategies Guide in the description
and the comments below or just give us a call for
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help and remember, our first consultation
is always free. Thanks for watching,
have a great day, and as always, have
an awesome week. We’ll see you next time.

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