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[FL] Who has the authority to sign off on trading in a vehicle that is titled to a revocable trust?
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I have a quick question regarding a trust and trading a vehicle from said trust. (I work in the automotive industry.)
I understand that dealing with trusts can be complex, especially when it involves trading a vehicle. Can you tell me if you are the trustee or a beneficiary of the trust?
I am a business manager for a dealership. I have a client who wants to trade a vehicle (a Toyota) that is part of his grandmother’s revocable trust. Currently, the vehicle is titled in Florida and titled to the trust. I spoke with the trustee (she is alive), and she granted permission. However, the grandson is not listed as a trustee. How do I proceed so this does not blow back on us?
Have you already initiated the process of trading the vehicle, or are you still in the planning stages?
We have papered and contracted the deal. However, I am not releasing the vehicle or taking the trade until I have this handled.
Is there anything else the lawyer should know before I connect you? Rest assured they’ll be able to help with your trust vehicle trade.
No.
Hello and welcome to the site! I am a licensed attorney and here to help with your situation. I have read your post and understand you’re dealing with a trust and trading a vehicle from it. Have you confirmed all necessary written permissions and documentation with the trustee?
I spoke with the trustee and have a copy of the revocable trust. They granted permission.
I have a title signed by the trustee and will obtain a signed odometer disclosure as well. There is no lien on this vehicle either. (It is owned free and clear by the trust.)
Okay, if the trust owns the vehicle, then the grandson doesn’t own the vehicle. That means that he can’t trade in a vehicle that he doesn’t own. The trustee of the trust would have to be the one who signed off on any trade-in agreement because the trust owns the vehicle. Under Florida law, a trustee has the power to sign and deliver contracts and other instruments on behalf of the trust (Fla. Stat. § 736.0816), and a vehicle’s ownership is transferred by the titled owner assigning the certificate of title (Fla. Stat. § 319.22). The trustee would have to be the one who completed any trade-in paperwork and signed off as the legal representative of the trust. So it sounds like you have gotten the trustee to complete the required paperwork to trade in the vehicle owned by the trust in whatever deal the grandson is entering into with you for the new vehicle.
I have a signed title and a signed odometer statement. Do I need anything else?
Great, having the signed title and odometer statement is essential. Next, you’ll want to ensure that you have a copy of the trust document that shows the trustee’s authority to act on behalf of the trust. This is important to verify that the trustee has the legal right to trade the vehicle. Additionally, if your state requires a bill of sale or any specific forms for transferring a vehicle from a trust, make sure those are completed as well.
I have a copy of the full trust. She is not on the deal, so the trust does not appear on the purchase and sale agreement or the bill of sale, only that the vehicle is a trade on the deal.
Okay, then it sounds like you have everything in order. Do you have any other questions or concerns I can help with?
I think that is it. Thank you.
You’re welcome! If you have any more questions in the future or need further assistance, feel free to reach out. Have a great day!
Quick question: if the trustee was deceased (hypothetically), what would I need to proceed with this deal?
If the trustee were deceased, the first step would be to determine if there is a successor trustee named in the trust document. The successor trustee would then have the authority to manage the trust’s assets, including the vehicle. If there is no successor trustee named, or if the trust document is unclear, it might be necessary to go through a legal process to appoint a new trustee. This could involve court proceedings, depending on the trust’s terms and local laws.
Could a trustee who was named on the trust sign the car over to the client, essentially “gifting” the car to them, and then could they trade it?
Yes, if the trustee is alive and has the authority to manage the trust’s assets, they could potentially gift the vehicle to the client. This would involve transferring the title of the vehicle from the trust to the client. Once the client legally owns the vehicle, they could then trade it in.
Got it.
I’m glad I could help.
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