Does anyone know how it works to lease in the name of a trust? So, does the trust name go on the title/registration but you as the individual would be a guarantor on the lease. For insurance do you still have a personal (not business) policy?
Im not sure why someone would want to open up such liability … In case of an accident, other party and their attorneys would know they hit a jackpot.
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In this case the trust would solely be used for the individual vehicle so there would be no other trust assets to go after, although I am not sure exactly what would happen. My question was more in the context of people leasing under their business/LLC and so I was wondering about a trust.
People do lease under those things but sometimes can run into issues with obtaining personal/commerical insurance. Not sure how @djrabbi does it. Is there a reason why you would create a trust specifically for this? Unless your not ?
I plead the fifth
All my cars are under my LLC but personal insurance. The business is listed as co-owner and insurance is fine with it.
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I bought property in a trust and compared to a business entity the trust doesn’t require any fees or filings. So that got me curious about buy/leasing the car in a trust too.
Got it, as @mani_is_kool mentioed, i personally wouldnt and stick to tradirional methods. Commercial insurance is pricey
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Generally speaking, you can be a personal guarantor for credit purposes, but put the lease in the name of the trust. I’ll assume you are the grantor of said trust as well, which would make things more fluid with insurance companies as well. You need a dealer that knows what they’re doing, and I’d clear it through your insurance company first.
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Could you do personal insurance and add trust as additional insured?
That is how I have mine set up but in my LLC
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Assuming this is a LRT/IRT that holds your other assets for estate planning purposes, the question makes sense for a purchase (asset) but not really for a lease.
One of my parent’s cars was a lease they eventually bought, when it was a lease it wasn’t included in the trust, and when they bought it out they titled it into the trust. During the lease term, if they passed, it would be a liability to be settled by the estate. Some captives allow the lease to be returned without penalty if the leasee passes during the term.
Their personal auto insurance handled all the scenarios under the same non-commercial policy. Check with your carrier and estate planner.
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