🚗 Some Attorneys Say to Never Put Your Car in Your Trust—But Are They Right?
If you’ve done some estate planning research or spoken to multiple lawyers, you may have heard this advice:
“Never put your car in your trust.”
But like many blanket statements in law, that advice is half-baked. While there are a few good reasons some attorneys say this, the truth is: in most cases, especially in Texas, it’s totally fine—and often smart—to transfer your vehicle into your revocable living trust.
Let’s unpack the myths, risks, benefits, and how to handle your car title properly as part of a complete estate plan.
🔍 Why Do Some Attorneys Say “Don’t Do It”?
This advice is usually based on three main concerns:
1. Liability Exposure
Some lawyers argue that if you put a car in your trust and someone gets into an accident while driving it, the trust (and all your other trust assets) could be liable in a lawsuit.
Reality:
That risk exists regardless of who owns the car. If you’re driving negligently, you’re personally liable. And if the vehicle is insured properly, your auto policy should provide primary protection.
Plus, in Texas, a revocable living trust offers no creditor protection during your lifetime anyway, so this argument is largely irrelevant.
2. DMV Bureaucracy
Some states make it a hassle to retitle vehicles into a trust. The paperwork is different, and not all DMV staff are familiar with how to process it.
Reality:
In Texas, the process is fairly simple. You just do a few things, such as fill out Form 130-U, provide a Certificate of Title, and include the name of your trust and trustee(s). No big deal.
3. Probate Isn’t a Big Deal for Cars
Some argue that cars aren’t worth enough to justify the effort to avoid probate.
Reality:
Maybe true in other states, but in Texas, even small assets like cars can cause delays. If your vehicle is not in your trust, your executor might need an affidavit of heirship or small estate affidavit to transfer title—not always smooth, especially when banks or title companies are involved.
✅ Why You Should Consider Putting Your Car in a Trust
1. It Avoids Probate
The #1 reason: your car will pass to your loved ones without a court order.
If your car is in your name only and you die, the DMV won’t just give it to your family. They’ll often require proof of probate or other legal documentation.
But if your car is titled in your living trust, your successor trustee can immediately transfer or sell the car according to your wishes.
2. It Keeps All Your Assets Under One Roof
If you’re already transferring your home, bank accounts, and investments into your trust, why not your car too?
Consistency matters. If your trust holds all assets, your trustee has clear authority to manage everything. No missing pieces.
3. Some Insurers Prefer It
Contrary to what some believe, most major insurance carriers don’t care if your car is owned by a revocable trust, as long as:
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The primary insured is also the trustee
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The driver is the person listed on the policy
Pro tip: Check with your insurer and simply list the trust as an “additional interest” or “owner” if needed.
4. It Doesn’t Trigger Taxes or Penalties
Transferring a car to a revocable trust typically in Texas:
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Doesn’t count as a sale
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Doesn’t trigger gift tax
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Doesn’t affect registration fees
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Doesn’t increase your insurance
🚦 How to Title Your Car to Your Trust in Texas
To title a car in the name of your trust in Texas, here are some common steps (but there’s are not exhaustive and may be different or change):
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Complete Texas DMV Form 130-U
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Write the buyer/owner as:
"John Smith, Trustee of the John Smith Living Trust dated March 10, 2025" as a hypothetical example -
Submit the title, proof of ID, and the trust document summary page if required
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Pay the standard transfer fee (no taxes typically apply unless there’s a lien)
📘 What if You Don’t Transfer It Now?
Here are some options if you forget or delay:
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Pour-over Will Backup:
A pour-over will moves the car into your trust after death—but only through probate. -
Assignment of Personal Property:
Some trusts include a blanket assignment of personal property, including cars. This can help, but the DMV might still require formal title transfer. -
Affidavit of Heirship or Small Estate Affidavit:
These may work but can be rejected by cautious banks or DMV clerks.
⚠️ When You Might NOT Want to Transfer the Car
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Leased Vehicles – Leasing companies may prohibit trust transfers
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Loaned Vehicles – Lenders often require personal ownership
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Business Use – Consider an LLC for liability protection in this case
In these rare situations, it may be better to leave the car out and plan for transfer another way.
🧠 Final Thoughts: Trust the Right Source
Estate planning is about control, clarity, and simplicity. While well-meaning attorneys may give conservative blanket advice, smart planning means evaluating all options in your unique context.
For most Texas clients, putting your personal-use vehicle in your revocable trust is a clean and effective solution—especially when the rest of your estate is trust-based.
✅ We Can Help You Do It Right
At Mike Massey Law, we help Texans build thoughtful, probate-avoiding estate plans—right down to the details like car titles. Our services include:
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Revocable Living Trusts
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Pour-over Wills
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TODDs and Lady Bird Deeds
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Car title and DMV guidance
📆 Book Your Consult Today
🌐 Learn More at
⚠️ Disclaimer:
This blog is for informational purposes only and does not constitute legal advice. Reading this blog does not create an attorney-client relationship. For personalized legal guidance, please contact a licensed attorney in your jurisdiction.
