Question: Probably kind of weird - sorry

[Sixty_vette]

This is probably a weird question - did a search on the forums and did not find anything.

I have an 89 year old uncle who has a 1960 Corvette. He has never been married, and other than us nieces and nephews has no other family. I am the executor of his estate, and in his will he has the I get the Corvette as payment for handling his affairs.

We he is to the point where he does not drive the car anymore, and called me to say he wants to transfer the car to me now.

Have no clue of the value (guess I need to find someone to appraise it), nor what it will take to "gift" the car to me.

Is anyone familiar with this type of situation? Will either of us need to pay taxes? Can he gift the car or does it need to be sold. What ramifications are there if he goes into a nursing home. I am in the process of looking for a lawyer to help with this, but thought I would post something here just in case there is someone that has experienced this.

His car is all original (motor, trans, diff), orig paint (not bad condition for 53 years old), interior is a little rough will need some work, convertible with a hard top. We did a frame-off a few years ago as his frame was totally rusted since it was his everyday car - even in winter. Any clue on value?

Whew - alot of questions - hope someone has "SOME" answers - LOL!

Thanks for letting me rant!

 

[96gs917]

I think your best bet in your situation is to consult a lawyer. Each state has different rules when it comes to
estates, and medicaid qualifications. I know in NY there is a 5 year "look back" period. Before your uncle would
qualify for medicaid, the state would come in and review 5 years worth of financial records, to identify what assets
he had available to him to pay for his own nursing home care. If the State determines the Corvette was a substantial asset
worth say $40,000, and you bought it from him for say $5,000 they may say he doesn't qualify for medicaid right away
because he had assets to pay for his own nursing home care.

As far as value of a 60 Corvette I am sure there are may more qualified people here to determine the value of the car then me.
I would suggest you give us all more details about the car (engine, options, etc) maybe even post some pictures
of the car, and I am sure someone will chime in.

You should definately consult an attorney first. You may also want get your cousins opinion on what to do with the Corvette
because if they are named as benficiaries in his will they may give you a hard time no matter what you do.

Good luck.

 

[jmhorn52]

If he goes on Medicaid the state will go back 5 years and fair market value will have to paid for any property transfered to others. In my experience he is allowed to keep 3k in assests There wasnt any mention of him being on medicaid or going into a nursing home but if thats a possibilty you need ot check carefully. Also on medicaid he only keeps $40 of SS check the rest goes to the nursing home minus any supplmental insurance he may have.

 

[66vette]

In Ohio all you have to do is both go to the title office he signs over the title at zero purchase price and states it is a gift and there will not be any sales tax other than a title transfer fee.

 

[Tom Bryant]

In Ohio all you have to do is both go to the title office he signs over the title at zero purchase price and states it is a gift and there will not be any sales tax other than a title transfer fee.

Yep, that's the way it is here in Ohio. No mater what the will says, he is still alive and of sound mind so he can give you (no cash transfer) the car if he wants to without any meddling from any other family member. You may owe taxes on it's value as income. He would probably need to change the will afterward where it says that the car is payment for you being the executor since you already have the car. In most states the executor is given a payment from the estate for his work. When I did my father's estate it was a set rate for hourly work. I had to submit a schedule of the time I spent and what I did.

If he willed the car to you upon his death you may not have to pay taxes depending on the total value of his estate. If he has a large estate there would be estate taxes. Under a certain amount there isn't. A check with the lawyer that wrote the will is in order.

My father lived at home until his death at 93 and had insurance, both Medicare and Blue Cross, so Medicaid was never a factor. I don't know how that would work in Ohio if it even applies in your case.


Tom

 

[Sixty_vette]

Thanks for the replies - definitely checking in with the lawyer and an accountant!

Here is a larger picture of the Corvette!

 

[vett boy]

I find your uncle absolutely fascinating .89 and this was his daily driver good for him .My goal is to semi retire at 85 and I hope I can give my C10 to my favorite niece or nephew.

If you decide to keep and maintain the car as long as he's alive I hope ya take him for a ride once in awhile .

 

[Sixty_vette]

I find your uncle absolutely fascinating .89 and this was his daily driver good for him .My goal is to semi retire at 85 and I hope I can give my C10 to my favorite niece or nephew.

If you decide to keep and maintain the car as long as he's alive I hope ya take him for a ride once in awhile .

LOL, well not his daily drive in recent years - back when he was working. This past year he never took it out once - too hard for him to drive now with the clutch and no power steering. I believe he just turned 80k original miles on it. Thus his desire for me to have it now rather than - well - later.

Still, he is a fascinating man - still works in his workshop and is a master of his metal lathe - the things he creates and fixes is beyond belief - I could go on and on about the things he has done for the family over the years!

 

[66vette]

No need to go to a lawyer or anyone else, if your uncle signs the title over to you at the Title office and states it is a gift nothing else needs to be done. As to the will, he no longer has the car and it is no longer an issue since he is the one that signed it over. I would just proceed with getting the title changed over into your name.

 

[96gs917]

Sounds like a pretty cool gentleman. He probably has a ton of stories he could tell you.
You are very lucky to have a guy like him for your Uncle.

Good luck with the car, and let us know how you make out.

 

[Toms007]

I find your uncle absolutely fascinating .89 and this was his daily driver good for him .My goal is to semi retire at 85 and I hope I can give my C10 to my favorite niece or nephew.

If you decide to keep and maintain the car as long as he's alive I hope ya take him for a ride once in awhile .

Hey, Steve I thought you were 93 a couple years ago!

 

[Tom Bryant]

The car looks like a keeper to me.

I don't know. If there is a provision in the will where you are to get the car as payment for being the executor and the car is given to you in advance it just seems logical that you would want that provision removed if for no other reason that to clarify what the status of the car is. As for gifting, someone can gift you up to a certain amount, it used to be $10,000., without you having to pay any taxes or even report it on your tax returns. Amounts over that level were taxed as regular income. If you were to get audited sometime in the next 7 years you just may have to show where you got your assets and what value was received and where you declared it as income. Not a position I would want to be in with the IRS. It sure doesn't hurt to check with someone just to be sure. Better safe than sorry.

Tom

 

[Sixty_vette]

Thank you all for your comments and suggestions! Actually we transferred the title yesterday (5/9/13) with no problems. My tax guy suggested I type up a short document that basically verifies this is a gift and no compensation of any kind was or will be received from me. My sister is a notary and took care of that. The title office basically said they do not need the form, but it a great idea as I "WILL" be getting a letter from I think the bureau of taxation asking to verify no money was transferred. So all in all things went extremely well.

So I am now the PROUD owner of a 1960 Corvette LOL

I do have questions as to how most of you insure your older vehicles like this - but I will start a new thread asking for direction there!

THANKS AGAIN!!