Situation: Mom finally realizes it's probably unsafe for her to drive based on age. This means a number of things will change which have ripple effects. Since I hate dealing with the DMV, I want to make sure everything is legal and any changes can be made online instead of standing five hours in the hot sun (which happened last time I was at the DMV).
Currently, we keep the car garaged at her place and I periodically use the car on short-distance trips (pre-approved by insurance company even though Mom is the only insured driver on the policy and I don't live at the same residence). I don't need to use her car but it's nice having it around in case something happens to my own car.
Goal: I'm trying to figure out the best course of action that will perhaps save money. Should I use the opportunity now to transfer the title to myself or should that happen at a (hopefully far) later date when Mom is deceased and there would be a capital gains basis step-up. The car is old but low-mileage and in decent condition, though realistically I doubt it would bring more than $10K. So money is not the main factor here. I'm currently thinking of simply transfering the vehicle registration to myself.
Following are some assumptions I'm making. If any of these assumptions are incorrect, please let me know. The biggest question concerns the existing umbrella policy:
Assumptions:
- Driver's License - DL needs to be turned in and an ID card issued instead
- Automobile insurance - Mom's policy needs to be canceled and I need to put her car on my own automobile policy
- Vehicle Registration - Car needs to be registered under my own name and address
- Vehicle Garaging - Even with the vehicle newly registered under my own name and address it is still okay to keep the car garaged at Mom's place.
- Umbrella Insurance - I'm assuming umbrella insurance is no longer needed. I believe the intent of the policy was if Mom or (deceased) Dad was involved in an at-fault automobile accident, they would be covered in the event of a lawsuit involving big dollar amounts. Surviving parent (Mom) is now the only insured driver on the policy. If she is no longer an insured driver, she would no longer need umbrella insurance coverage, correct? The exception would be if the policy acted as an add-on to her existing homeowner's policy and I'm not sure how to determine that. (I have no understanding of her HO policy.) Note that Mom has a high-value home.