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Richard, Attorney
Category: Business Law
Satisfied Customers: 53685
Experience:  32 years of experience practicing law and a businessman.
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If a grandparent pre-pays a car lease for their grandchild

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If a grandparent pre-pays a car lease for their grandchild (e.g. 36 month lease, paid in advance), and grandparent puts the car in the name of the grandchild, is there any liability to the grandparent if anything what-so-ever goes wrong?
The child is on his parents' policy and is a dependent of the parents.
Does it matter if the kid is a minor or an adult?

Is it OK if grandparent writes the onetime check to lease company, or should it be to the kid? This isn't a tax question, as it's a gift beyond the exclusion regardless.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good evening. It makes no difference who pays for the car. If the car is not titled or leased in the grandparent's name, the grandparent does not sign the lease, and the grandchild/car is not on the grandparent's insurance policy, the grandparent has no potential liability. There is no reason to worry about simply writing the check directly to pay for the lease.

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Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help!
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