Purchasing new car for elderly mother, need to protect investment

Asked over 1 year ago - Carmel, CA

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I am buying my 70 year old mom a new car, but would like to protect myself in case of accident by listing her on the title. I would also like to keep my unstable brother from inheriting any portion of the car in the event that mom passes away in the next five years. Mom has no other assets and doesn't have a will. Should I place a lien against the car on the date of purchase, and should it be on the title?

Attorney answers (3)

  1.

    Pro

    Grand Rapids Elder Law Attorney
    Contributor Level 17

    4

    Lawyers agree

    Answered December 29, 2011 22:26. The lien will probably get you into Medicaid trouble, but if you make the trust the TOD owner of the vehicle, you'll still avoid probate and secure your interest in the vehicle.

  2. Pro

    Woburn Elder Law Attorney
    Contributor Level 8

    3

    Lawyers agree

    Answered December 29, 2011 10:30. One option would be to create a trust and have the car titled in the name of the trust. Your mother could then use the car for life but it would not become part of her estate. This would also protect you from liability due to her driving. Otherwise, your mother should have a will drafted that clearly indicates the car is to go to you on her death.

  3. Greenwood Village Business Attorney
    Contributor Level 11

    1

    Lawyer agrees

    Answered December 29, 2011 22:31. Just a thought--I would compare the cost of setting-up the trust vs. keeping the title in your name and just having good insurance coverage + umbrella---and kudos for buying your mom a Porsche:-)

    Legal Disclaimer: Richard W. Beck is licensed to practice law in Colorado. His answers are for general information... more

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