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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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My wife just bought a new car my name is ***** ***** can she put

Customer Question

my wife just bought a new car my name is ***** ***** can she put car in a trust so okla can't take it away from her I'm in bad health i owe lot of taxes car is worth 40000 she only owes 20000
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
I assume - the property will be transferred to the trust - and I assume that is revocable trust - that will not provide any protection as a revocable living trust is ignored for income tax property and all assets are treated as owned by the settler. If that is an irrevocable trust - yes - assets would be protected - but the irrevocable trust is treated as a separated legal and taxing entity.The issue will come when you try to transfer the title. The creditor still holds a lien on the title because it was financed - and when the title is changed - most likely - refinancing will be requested.The trust would be required to show its income and ability to pay the loan.
Expert:  Lev replied 1 year ago.
So - to gain a legal protection from garnishment - that should be irrevocable trust.
To transfer the title to the trust - you woudl need to notify the creditor - and have then agreed for such change. Most likely - they will ask to pay off the loan Or to refinance in the name of the trust.
Let me know if you need any clarification this matter.