Legal Question in Personal Injury in Massachusetts
should auto for teen driver be owned by the parents or child for liability prote
Whom should be the legal owner of an auto that will be primarily driven by a teenage driver ? My concern is protecting property and investments. The insurance policy on the auto has limitations on damages that could be persued in case of an accident. When that is exhausted, can the injured party persue the assets of the parents ? If so, what is the best wat to protect those assets ?
2 Answers from Attorneys
Re: should auto for teen driver be owned by the parents or child for liability p
Did you decide, then, to put the car in your kid's
name? (By the way, if the value is over $10,000 you are supposed to file a gift tax return. If it's under $20,000 and you are married, there are no gift tax ramifications but you still have to file the return.)
Re: should auto for teen driver be owned by the parents or child for liability p
There's a little legal advantage to having the vehicle owned by the child (assuming the child has little assets and is in any case the driver).
Having the vehicle owned by the parent DOES give a potential plaintiff another defendant to "go after".
Better advice: Use insurance (a big policy for your kid) to protect yourself. More advice: keep your kid from driving unsafely! Have him or her drive you around and give constructive criticism if you have any; go over the seriousness of the injuries (to their beautiful faces and/or bodies ... if you see what I mean) that can result from accidents. -- Easier said than done, to tell a teenager anything like that, I know.
Good luck!
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