The short answer is yes.
There is, of course, some nuance to that, but a trust can hold ownership or title to anything that an individual can hold.
The issue comes in the practical ramifications of trust ownership of motor vehicles. Liability created by the use of a trust owned vehicle could expose other trust assets to creditor exposure. There would also likely be the implications of working with a trustee to pay vehicle expenses, or working through the lack of education at the DMV or tax department regarding trust ownership of such an asset.
It depends on the car insurance company and on what the rates end up looking like. Usually when you transfer a car from your own name, to the name of the trustee of your trust, the car insurance company may not allow it. You’ll have to find an insurance company that’s okay with that type of ownership. That type of ownership may also trigger a higher auto premium because they may consider it the same as a business owning the vehicle rather than an individual. So you don’t benefit from your driver’s history or your credit history like you would if it was individually owned.
Paul Yokabitus is the CEO and Managing Partner of Cary Estate Planning, a Cary, NC, estate planning law firm. With years of experience in estate and elder law, he has zealously represented clients in various legal matters, including estate planning, guardianship, Medicaid planning, estate administration, and other cases.
Paul received his Juris Doctor from the Campbell University School of Law and is a North Carolina Bar Association member. He has received numerous accolades for his work, including being named among the “Best Attorney in Cary” in 2016 and 2017 by Cary News and Rising Star in 2020-2023 by Super Lawyers.