Need to re-title boat to our trusts

Ftbinc · Jan 18, 2020

Hi All:

Looking for guidance. We have updated our trust documents and need to re-document the boat in the name of the trusts. Has anyone done this recently? what is involved? the boat is in each of our names currently and we want to re-document in the names of the trust instead.

Any help is always appreciated.

Paul
OMA - KK Manatee
USCG 50 Ton Master
US Sailing Certified Judge

BandB · Jan 18, 2020

Ftbinc said:
Hi All:

Looking for guidance. We have updated our trust documents and need to re-document the boat in the name of the trusts. Has anyone done this recently? what is involved? the boat is in each of our names currently and we want to re-document in the names of the trust instead.

Any help is always appreciated.

Paul
OMA - KK Manatee
USCG 50 Ton Master
US Sailing Certified Judge

You say document so I'm assuming it is a documented boat. In this case, it's simply a transfer, no different than a sale or any other transfer.

Now, if your state requires registration, you'll have to fill out paperwork there to transfer it, often just on the back of the registration, but you may have to show further evidence that it's not a sale subject to sales tax. This may or may not change any property tax situation depending on the state.

Berwick · Jan 18, 2020

You also need to make sure your insurance policy is changed to reflect the new owner, the trust. I suggest you add yourself as an additional insured for liability purposes. Hopefully this is something you discussed with a trust and estate professional in your state as there may be tax and insurability consequences placing assets such as a vessel in trust. Also, depending on the trust provisions, getting the vessel out of trust could be problematic. As stated in the previous post if your vessel is federally documented all you need to do is a transfer and re document with the NVDC (dco.uscg.mil). State requirements vary by state so you will need to check your home state for that answer.

Pau Hana · Jan 21, 2020

Berwick said:
You also need to make sure your insurance policy is changed to reflect the new owner, the trust. I suggest you add yourself as an additional insured for liability purposes. Hopefully this is something you discussed with a trust and estate professional in your state as there may be tax and insurability consequences placing assets such as a vessel in trust. Also, depending on the trust provisions, getting the vessel out of trust could be problematic. As stated in the previous post if your vessel is federally documented all you need to do is a transfer and re document with the NVDC (dco.uscg.mil). State requirements vary by state so you will need to check your home state for that answer.

Exactly.

The policy follows the named insured on the title, so if there is a claim, any settlement will be quick and easy vice wrangling its way thru a court system to ascertain who the beneficial owner actually is.

gsholz · Jan 23, 2020

I wouldn't put boats, cars or other depreciating assets into a trust. A lot of paper work for little benefit. Just sell them when you are done with them.

SoWhat · Jan 23, 2020

If this is USCG documentation you can transfer via form CG-1258. There is a section related to trust. If this is an irrevocable estate planning trust for medicaid purposes you will no longer be able to sell the boat. Only the trustee will have that authority. Make sure you have a couple of trustees so one can't do anything crazy.

Pau Hana · Jan 23, 2020

gsholz said:
I wouldn't put boats, cars or other depreciating assets into a trust. A lot of paper work for little benefit. Just sell them when you are done with them.

There a quite a few advantages- taxes, legal liability, sale of the vessel, and more.

Mark P · Jan 29, 2020

Be careful putting an asset (depreciating as others have said) in a trust that can generate or create huge liability. Generally folks put assets in trust to protect them from being taken by a creditor or for tax reasons etc. I have no idea of your boat but let's assume for discussion It's worth putting in a trust (e.g. Ocean Alexander 75 ft) if it sinks with 15 folks on board, the trust as owner could face huge claims. Factor this in your decision. For me boats, cars and two wheelers stay in personal name, if I go broke, they can have them.

Need to re-title boat to our trusts

Ftbinc

Senior Member

BandB

Guru

Berwick

Veteran Member

Pau Hana

Guru

gsholz

Senior Member

SoWhat

Guru

Pau Hana

Guru

Mark P

Senior Member

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