Should I put my vehicle in my trust in Arizona?

We all want our Living Trust to work properly when the time comes. But sometimes knowing which assets to include in your Living Trust can be confusing. Phelps LaClair is here to help with your estate planning needs and to ensure your Living Trust includes all that is necessary.

For personal vehicles, it’s usually best to include them in your Living Trust to make life easier on your heirs (company vehicles are typically titled in the name of the company).

Why should my car be in my living trust?
Titling your car in your Living Trust minimizes headaches for your Successor Trustee. Remember that in Arizona, probate is required if you pass away with assets worth more than $75,000 titled under your individual name (i.e. not titled in your Living Trust).

Does including my car in my trust open me to exposure?
What if you get in a car accident and get sued? Will all of your Trust assets be exposed to this lawsuit if the Trust owns your vehicle?

The truth is, if you get sued for a car accident and your insurance limits are insufficient to cover the claim, the assets in your Living Trust could be exposed regardless. Whether the vehicle was titled in your personal name or in the name of your Living Trust at the time of the accident has no effect. Remember, your Living Trust is an estate planning tool, not an entity to protect you from lawsuits.