RV placed in Living Trust?

[PERSonalTime]

Has anyone ever considered or has ever actually placed their recreational vehicle into their revocable living trust? What are the pros and cons of transferring title for a recreational vehicle into one’s living trust?

 

[pb4uski]

Never considered it... yet... in process of renewing our estate planning.

Same as anything else, it wouldn't have to go through probate and the successor trustees would have access to the vehicle.

We were at an RV Show on Saturday and for giggles went through a georgeous class A motorhome that was priced at $488k (and that was the discounted from MSRP).... worth more than one of our two homes.

 

[FI_RElater]

...just use TOD

in our state, we put TOD (and can put contingency TOD, but haven't) on TT and all vehicles
attorney, when we initially set up trust, had said that TOD would be easier. Doing so eliminates them from probate, as well, so it's very likely that, once the last goes, only a small estate filing would be needed for anything that gets left out of the trust (which gets drawn in by the (can't remember what they called it) will... such that administration should be easier)

being that our vehicles/TT don't make up much of our net worth, and that it's likely that at least a few will be replaced over the years, it also seems a good trade off. All vehicles are covered under insurance...including the umbrella...so I don't see any downside to this approach

 

[Retire2023]

Has anyone ever considered or has ever actually placed their recreational vehicle into their revocable living trust? What are the pros and cons of transferring title for a recreational vehicle into one’s living trust?

When my parents were creating their trust years ago, the attorney advised NOT putting vehicles in the trust for liability reasons. Not sure if laws/rules have changed or evolved to invalidate that thought process, but that was the advise at the time.

 

[FI_RElater]

When my parents were creating their trust years ago, the attorney advised NOT putting vehicles in the trust for liability reasons. Not sure if laws/rules have changed or evolved to invalidate that thought process, but that was the advise at the time.

Not sure if that also wasn't part of the thought by the attorney...in that any accidents might open up the trust to possible suits (it's been too many years since we created it to remember)

 

[cathy63]

When my parents were creating their trust years ago, the attorney advised NOT putting vehicles in the trust for liability reasons. Not sure if laws/rules have changed or evolved to invalidate that thought process, but that was the advise at the time.

I googled this and saw a couple of sites said the same thing, but I'd love to understand it better if anyone can explain the details.

It seems to me that a revocable living trust, which is what we and most people have for the purpose of avoiding probate, does nothing to protect your assets from liability. If you are sued because of a car accident and lose and don't have enough insurance, then the property in your trust can be seized to satisfy the judgment (with exceptions for things like the home you live in and some types of income and possibly retirement savings depending on your state, but that is not related to whether you have a trust or not). I don't see how any additional property is at risk if the car you are driving when you cause the damage is also in the trust. What am I missing?

I don't see a particular advantage to putting an RV in a trust either though since you can transfer it via a TOD title. Putting it in a trust means dealing with the DMV, the car insurance company, the umbrella insurance company, and the lien holder if there is one. Seems a lot easier to just add the TOD to the title and deal only with the DMV.

 

[PERSonalTime]

I googled this and saw a couple of sites said the same thing, but I'd love to understand it better if anyone can explain the details.



It seems to me that a revocable living trust, which is what we and most people have for the purpose of avoiding probate, does nothing to protect your assets from liability. If you are sued because of a car accident and lose and don't have enough insurance, then the property in your trust can be seized to satisfy the judgment (with exceptions for things like the home you live in and some types of income and possibly retirement savings depending on your state, but that is not related to whether you have a trust or not). I don't see how any additional property is at risk if the car you are driving when you cause the damage is also in the trust. What am I missing?



I don't see a particular advantage to putting an RV in a trust either though since you can transfer it via a TOD title. Putting it in a trust means dealing with the DMV, the car insurance company, the umbrella insurance company, and the lien holder if there is one. Seems a lot easier to just add the TOD to the title and deal only with the DMV.

Is registration of the RV in a TOD title applicable in the state of California?

 

[cathy63]

Is registration of the RV in a TOD title applicable in the state of California?

I've never done it myself, but I don't see why not. California allows TOD on registrations for cars and boats, so a typical RV that you can drive with a Class C license shouldn't be any different. I suppose there may be special rules if it's so big it requires a Class A or B driver's license, but I haven't looked that up.

 

[PERSonalTime]

I've never done it myself, but I don't see why not. California allows TOD on registrations for cars and boats, so a typical RV that you can drive with a Class C license shouldn't be any different. I suppose there may be special rules if it's so big it requires a Class A or B driver's license, but I haven't looked that up.

Thanks Cathy63, I’ll check it out! Anyone else want to chime in on this?