Legal Question in Personal Injury in Nevada
So: I want to give my elderly mother (who is on SSI and welfare) my old car (2001 Honda Accord LX; $2,700 value or so). She is afraid that if I do so, the government will take it from her when she gets her SSI interview next year and they ask if any relatives have given her anything. So she wants me to retain the title. She will pay for registration, insurance and such, but I'm confused about the ownership issue. Am I liable for the car and any accidents she might get into if the title is in my name but she has registered it, insured it etc? Or do I have to give it to her outright to untangle myself from it?
2 Answers from Attorneys
To eliminate all risk you would need to title it in a name other than your own, could be in the name of a special needs trust. However, if you have it insured and if there is no issue of your mother being unable to properly drive the likelihood of anyone trying to find liability on you is highly unlikely though remotely possible.
My suggestion would be for you to sell it to Mom for, oh, $2,700 with a legitimate contract evidencing the sale. She could then title the car in her own name (removing any risk of you being held responsible for "negligent entrustment" of the car to a negligent driver) and you go on the title as lienholder. This places you in the same position as a bank would be if Mom financed a purchase elsewhere, but you are not the titled owner.
When she has to establish eligibility for government benefits, she can show that although she now owns a car, she owes as much or more than it is worth. She would take out her own insurance policy and register it as the legal owner on title.
Whether you ever collect payments on the debt against the car is between you and Mom. How's that for telling everyone else it is none of their business? ;>)
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