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Giving Car To Kid

intparentintparent Registered User Posts: 34,880 Senior Member
edited June 2017 in Parent Cafe
So D2 is heading off to grad school in another state, and I am planning to give her my old Subaru (over 150K miles on it). I'm kind of clueless about a few things: - Do I have to transfer the title to her, or can I continue to own it? What are the pros & cons of the options? - Insurance might be cheaper in her new state -- but how can I tell? I assume she has to own it if it will be insured there. I told her I'd pay half the cost of the insurance regardless.
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Replies to: Giving Car To Kid

  • somemomsomemom Registered User Posts: 10,880 Senior Member
    I'd put it in her name to protect your liabiilty
  • jesse'sgirljesse'sgirl Registered User Posts: 422 Member
    Another issue is registration. Registration costs are different in different states. It may be beneficial to leave the car registered at home, or it may make more sense to register in the new state. Some states have inspection requirements that might entail some leg work or even repairs. In some states you have to return the car to the state where it's registered (maybe for inspection) in order to keep it registered in that state. Maybe your state would require that if you left it registered in your state. Usually you have to register in the new state eventually.
  • twoinanddonetwoinanddone Registered User Posts: 19,274 Senior Member
    You'll probably get a better insurance rate if you continue to own it and insure it with your car, just listing her as a driver. It really depends on where you live and where she lives. Some states (Florida) are pretty expensive to register the car the first time but then after that it goes down.

    Call your insurer and ask. Usually they are pretty helpful in telling you the best options.
  • oregon101oregon101 Registered User Posts: 5,134 Senior Member
    D had our car for years in RI. We owned it and she stayed on our insurance.
    She moved to MA and she was required to register it there as well as get insurance that
    covered MA. We sold it to her officially for $5.
  • doschicosdoschicos Registered User Posts: 19,096 Senior Member
    In order to register it in another state, your daughter would most likely need to get a driver's license in that state and declare residency. Is that something she is planning on doing?
  • BunsenBurnerBunsenBurner Registered User Posts: 36,458 Senior Member
    edited June 2017
    You can give $14k gift to anyone - anyone! - once a year without having to file a gift tax return. Add your spouse's 14k, and that is a nice car. When we gave the previous car to big kiddo, we wrote "gift" - no one asked a Q.
  • bookwormbookworm Registered User Posts: 8,448 Senior Member
    MA was very strict. In addition, my son couldn't get a local sticker to park on street without registering in that state. . On the whole, but mthink it gives peace talks f mind to have the grad student own the car,mtitle and all
  • travelnuttravelnut Registered User Posts: 1,837 Senior Member
    While DD had a car out of state for college, it was registered in our names and state; insurer wanted notification of when the car was where. Additionally, there was an uptick in premiums for the second location. May be worth looking into as part of the decision.
  • SweetTeaSweetTea Registered User Posts: 332 Member
    In our state you can forgo the yearly inspection that is required for the registration tag each year by simply stating car is out of state with kid at college. No paperwork necessary. Though when car crosses back into the state you have three days to get inspection. This has worked to keep car on our insurance throughout undergraduate and grad school. Check if that is the same in your state.

    Ultimately keeping kids under our insurance has been much cheaper.
  • Sue22Sue22 Registered User Posts: 5,541 Senior Member
    Another reason to register it in your child's name- If your child accrues any parking tickets or speeding/toll violations via camera they'll go under their name, not yours.
  • thumper1thumper1 Registered User Posts: 71,671 Senior Member
    @intparent

    We gave our DS our old Subaru to use while he was in grad school. Since he was NOT changing his driver's license, or anything else...we kept the registration in our name, and also the ownership.

    We contacted our insurance company and they were fine being told a college grad student wpuld be using the car out of state...for school. So...call your car insurance company...and see if they are OK with the car being garaged elsewhere.

    When the kid graduated...WE sold that car,
  • emilybeeemilybee Registered User Posts: 12,908 Senior Member
    Echoing exactly what bookworm said, so check requirements in state where your kid is moving. We sold car to him for $1.

    We couldn't even keep car insured by our ins co because they don't write in MA.

    He didn't get a MA license for over a year because he was lazy. It didn't matter at all that he had a NYS license to register the car or get resident parking sticker (required in MA to park on street.)
  • KKmamaKKmama Registered User Posts: 2,930 Senior Member
    When my oldest headed off to WI from PA after graduating she had no permanent job for two years and worked as a substitute teacher. We subsidized her by keeping car in our name and helping with medical costs until the ACA kicked in a year later. With no real job we weren't sure how long she'd stay before having to come home.

    All was fine until at the end of those two years her then fiancée was driving the car and totaled it. Our insurance company was not too happy. And of course our rates were increased. And one driver involved in the accident tried to sue us as owner of the car.

    In a crazy way it worked for us because my husband had been fired and lost his professional credentials. Kid was moving to Alaska and we had no way to afford going to WI to sign over the car as a donation or to sell as a junker. What insurance paid out for it covered a quarter of COBRA for our health insurance. We had to declare bankruptcy cause of kids high medical bills on our credit card and named the person who tried to sue, which protected our house.

    Second kid got her own car insurance the first day she moved out of state. Car we helped her but while in college was titled in her name from the get go.
  • gouf78gouf78 Registered User Posts: 7,094 Senior Member
    After going around in circles a couple times when this came up we put the car in kid's name for liability reasons. Even though the insurance cost increased it was worth it if anything major happened.
  • happy1happy1 Forum Champion Parents, Forum Champion Admissions Posts: 22,622 Forum Champion
    When our kids took a car to college/grad school we knew it was temporary. We did not gift the car to them rather they used it for a period while in school. We kept the car in our name and under our insurance.
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