Legal Question in Wills and Trusts in Mississippi
Required to pay sales tax twice?
A relative in Texas had set up a Living Trust. He was Trustee. I was Successor Trustee. He bought a vehicle prior to his death, paid for it in full out of the money from the Living Trust, and put the title in the name of the Living Trust. When he died, I acquired the vehicle and brought it home to Mississippi. When I registered the vehicle, got MS tags, and changed the title to my name, I was required to pay sales tax on the vehicle. Should I have had to pay sales tax?
2 Answers from Attorneys
Re: Required to pay sales tax twice?
Having the certificate of title transferred from the Living Trust to you would require sales tax because the Living Trust is not in any way a tax savings entity. The main purpose of a Living Trust is to avoid probate if avoidance of probate is desired.
Re: Required to pay sales tax twice?
Based on the facts you gave, yes. From what you're saying, by placing the title in your name, the vehicle's ownership changed from the trust to you. If the vehicle is supposed to still belong to the trust, you have now stolen the vehicle. I assume that you are not a beneficiary of the trust since you are a successor trustee. If the vehicle still belongs to the trust, you need to take the trust and other necessary papers down to the county office, show them your mistake, get the title reissued, and get a tax refund.
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