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Many estate planners are recommending trust arrangements to meet certain financial arrangements of their clients. In these cases vehicles are transferred from the individuals to the trusts. At that point the trust is the legal owner. Personal Auto policies are designed for individuals not legal entities. An endorsement can be placed on the policy clarifying this arrangement so that the trust will be considered “owned” by a person.

Some planners recommend against transferring ownership to a trust. Their concern is the liability exposure to the trust assets. It is important that you consult with legal counsel who understands these matters.

Also important, is to remember to tell your agent who actually owns the vehicle, that is how is it titled with the state it is registered in. Insurance policies need to reflect the ownership as registered. Coverages in the policy and claims for damages to vehicles are very much affected by the ownership as registered.