27 Sep Should You Include Your Car in Your Living Trust?

When most people think about funding a living trust, their focus is on big-ticket items like their home, investments, and savings accounts. Cars don’t always make the list. But should you include your vehicle in your trust? The answer really depends on the car, your situation, and what you want your estate plan to accomplish.

Here’s what you need to know about adding a car to your trust, and when it might (or might not) make sense.

Should I Put My Car in a Trust?

It depends. If you only have one car, Arizona law already provides some shortcuts that may keep it out of probate. But if you own multiple vehicles or a high-value car (like a classic Mustang or luxury SUV) it can be smart to include these assets in your trust. That way, your heirs won’t face any delays with the transfer of ownership.

How to Place a Vehicle in a Trust

Transferring ownership of a vehicle over to your living trust works a lot like retitling real estate property. You’ll need to update the title with the Arizona Motor Vehicle Division to list the trust as the new owner. From that point, the car is officially part of your trust, and your successor trustee can handle it according to your wishes. 

Can You Finance a Vehicle in a Trust?

Some banks will allow you to finance your vehicle because they treat the trust as the individual. However, gathering the right paperwork and the risk of liability can be a hassle. If your car still has a loan, the lender may prefer that the title stay in your name until the loan is paid off. In those cases, once the car is paid off, you can move it into the trust. 

Does Putting a Car in a Trust Help Avoid Probate?

Yes. Any assets in your trust will avoid probate in Arizona. But for smaller estates, you may also use a transfer-on-death title or a small estate affidavit to bypass probate without needing a trust. 

For example, if you’re leaving behind a family sedan, a TOD might be all you need. But if you’re leaving behind a collection of motorcycles and trucks, a trust keeps things much more organized. 

What About Liability in a Lawsuit?

This is one area where people sometimes get the wrong idea. Putting your car in a trust doesn’t protect it from liability. In fact, if your car is involved in a lawsuit, the trust could be named in the claim. For liability protection, solid auto insurance is still your best safeguard. 

Alternatives to Putting a Car in a Trust

If you don’t want to add your vehicle to your trust, there are other estate planning tools that work well in Arizona:

• Transfer-on-death (TOD) title—avoids probate and lets you name the person who inherits your car.
• Joint ownership—with a spouse or co-owner, the car automatically passes when one owner dies.
• Small estate affidavit—if the estate qualifies, ownership can be transferred without the need for probate. 

Estate Planning That Considers Every Asset

At Phelps LaClair, we don’t just look at the big assets. Every detail matters when building a strong estate plan, right down to your car keys. Whether you should put your vehicle in a trust—or use an alternative tool—depends on your unique situation. 

Not every car belongs in a trust. If you trade in vehicles every few years, it may not be worth the effort to retitle them. But for a car you plan to keep long-term, or one with high sentimental or financial value, adding it to your trust can simplify things for your family later on.

Contact us today to schedule a consultation and find out how estate planning can help you protect all of your assets, large or small. 

Images used under creative commons license – commercial use (9/24/2025). Photo by Quintin Gellar on Pexels