HORROR STORY: YOUR CAR, YOUR FAULT
the beginning of this chapter, each car in your family should be titled to only one person’s name. If you’re a parent to a teenager, you’ll be liable, and there’s nothing you can do to change that. However, I strongly urge you to sell or give them the car when they turn 18 and ensure they’re the sole title holder. TENANTS BY THE ENTIRETY Speaking to a different title aspect, it’s important to look at how you title your assets. Some states have a joint ownership form called “tenants by the entirety.” If you’re married and can take advantage of this, I strongly urge you to. How does it protect you? If you cause an accident in a car titled only to you and get sued, the other driver can’t touch Madison had her parents’ car while she was at college. She caused an accident that involved multiple cars. Thankfully, there were only some minor injuries; however, the drivers and passengers in other cars all filed lawsuits for negligent infliction of emotional distress. The total amount they sought was around $150,000 in damages. However, because the car was still in Madison’s parents’ names, they’re the ones at the receiving end of the suits, so they and their insurance must fight and/or pay. One way that Madison’s parents could’ve protected their assets is by making sure the car was in their daughter’s name — and only hers. Not that any parent wants their child to deal with this situation, but, in this case, Madison would have far fewer assets. Plus, since she caused the accidents, she should be the one held liable.
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