Legal Question in Wills and Trusts in California
hi my mom is passing away with cancer and she is giving me her vehicle its worth around 4500.00 and she owes back taxes if I put the vehicle in my name will the goverment take it from me, or do I put it in someone elses name? she live in CA I live in MN
2 Answers from Attorneys
If there is an IRS tax lien the government could go after the vehicle as being an attempt to give away assets. If there is no lien currently, I am not sure that they could later go against the vehicle once they get a lien, but they might be able to do so on the basis it was a phony transfer. But I doubt they are likely to go after it.
Has a tax lien been filed against your Mother? That might determine the next step. Additionally, I assume by your question there is no lien of the lender on the vehicle? Is it paid for or is there an amount owing? You will not be able to transfer title unless the lien of the lender is paid first. Mom is entitled to make gifts so unless this is in fraud of creditors, whomever they may be, it seems fine. If you put it in someone else's name to avoid a creditor, that would be indicative of fraud of creditors. Also, you open yourself up to litigation problems later if that person does not feel like transferring title back to you.