Why Putting Your Car in a Trust Might Be the Right Move in Kansas
When most people think about estate planning in Kansas, they focus on the big stuff—houses, bank accounts, retirement plans. But what about your car?
You may not realize it, but putting your vehicle in a trust can help your loved ones avoid court delays, reduce stress, and preserve your legacy. In this blog, we’ll explain exactly what it means to place a car in a trust in Kansas, when you should do it, and how it fits into a smart estate plan.
What Does It Mean to Put a Car in a Trust?
A trust is a legal arrangement where a person (the trustee) holds and manages property on behalf of another (the beneficiary). When you “put your car in a trust,” you’re changing the legal ownership of the vehicle from your name to the name of your trust.
But don’t worry—you can still drive the car and use it as usual. Nothing about day-to-day life changes. What changes is how your car will be handled after your death or incapacity.
If your car is not in a trust, it may need to go through probate—a time-consuming and public court process.
Why It Matters in Kansas: The Risk of Probate
Kansas probate law can be complex. Even modest estates must go through a legal process if assets like cars or bank accounts aren’t titled correctly.
If your car is not in a trust or designated properly:
It may be frozen until probate is complete
Your family could be stuck without transportation during that time
Probate adds delays, stress, and legal costs
If the title is unclear, it could spark disputes among heirs
Adding your car to your revocable living trust helps you avoid all of this.
Top Benefits of Putting a Car in a Trust
Avoid Probate
With your vehicle owned by your trust, it bypasses probate entirely—allowing for a faster, private, and smoother transfer to your chosen heirs or beneficiaries.
Simplify Administration
Your successor trustee can handle all property, including vehicles, without needing separate court orders.
Continuity in a Crisis
If you become incapacitated, your trustee can manage, maintain, or sell the vehicle as part of managing your care and finances.
Peace of Mind
It’s one less thing for your family to worry about. And for many Kansas families, cars represent more than just transportation—they carry memories and meaning.
When You Should NOT Put a Car in a Trust
If you’re using an Asset Protection Trust, you typically should not place your car in it.
A car is considered a “hot asset.” It’s used frequently, it’s out on public roads, and it carries a real risk of accidents or lawsuits. If that vehicle is titled in the name of your asset protection trust and it’s involved in a legal claim, all the other assets inside that trust could be exposed.
Example: If your car, titled to your asset protection trust, causes an accident, the injured party could go after the entire trust—defeating the very purpose of creating it.
That’s why, in most asset protection strategies, your car should stay titled in a separate legal structure (like a Revocable Living Trust) apart from the protected assets.
How to Put a Car in a Trust in Kansas
When I first began practicing, I advised clients to title the car directly in the trust’s name. It worked legally, but I learned that some insurance companies increased premiums when the car was owned by a trust.
Now, I recommend a more flexible approach:
1. Use an “OR” ownership format.
Title the vehicle as: “Bill Smith OR the Bill Smith Living Trust.”
This keeps insurance rates stable while allowing your trustee to act if you become incapacitated or pass away.
2. If there is a loan on the car:
Some lenders won’t permit ownership changes during financing.
In that case, keep the title in your name and add the trust as the Transfer-on-Death (TOD) beneficiary.
While not ideal for incapacity, it still has the advantages of the trust upon death.
3. Why this approach works:
Avoids probate while keeping insurance costs low
Ensures the trustee has authority when needed
Preserves the protection and planning benefits of your Revocable Living Trust
Should You Include Every Car You Own?
If you have designed a trust that is customized for your family circumstances, there is very little reason why any assets should be left out. There are two reasons a car might not be titled to a particular trust.
You are about to sell the car: If the car is about to be sold and replaced, it may not make practical sense to take the time to do title work prior to the sale. However, the replacement vehicle should be titled so that it has trust control.
Some vehicles might belong in a different kind of trust. The trust we are generally referring to in this blog is a Revocable Living Trust (RLT) which is designed to manage assets during your life, continued into incapacity, and after your death. However
If the car is a classic or collectable car, you might want to protect it in an asset protection trust (as long as it is not likely to lead to litigation).
If the car is for a disabled person, it might be better placed in a Special Needs or Supplemental Needs trust.
Real-Life Examples From Kansas Families
Want to hear real stories of how vehicle ownership and trust planning impacted families like yours?
Check out our Story Time with Mark, where we break down real-life scenarios, pitfalls, and successes in Medicaid and estate planning.
Final Thoughts: It’s Not Just a Car
For many people, a car is the most practical asset they own—and often, one of the most emotionally significant. Whether it’s the vehicle that carried your kids to school or the one your grandkids love to ride in, how it’s passed on matters.
Including your vehicle in a trust is a simple but powerful step toward protecting what matters—your assets, your family, and your legacy.
Schedule a free consultation today and let’s talk about the right way to handle your estate, from home to vehicle and everything in between.
