tod car title

[jrdnoland]

Jurisdiction

Ohio

I bought my mother a car and we put a tod on the title so I would get the car when she passes.

My mother just told me that she used the car as collateral for a small loan and that the loan is now behind.

My question is can a company legally take her car and if they saw the tod on the car are they responsible for the debt?

Trying to figure out a way for my mother to keep her car.

Thanks,
Jeff

 

[Zigner]

I bought my mother a car and we put a tod on the title so I would get the car when she passes.

My mother just told me that she used the car as collateral for a small loan and that the loan is now behind.

My question is can a company legally take her car and if they saw the tod on the car are they responsible for the debt?

Trying to figure out a way for my mother to keep her car.

Thanks,
Jeff

The TOD means nothing until she dies. It's her car, not yours, and you have no legal claim to it.
Perhaps the best way to keep the car would be to pay the loan, as agreed.

 

[Tax Counsel]

My question is can a company legally take her car and if they saw the tod on the car are they responsible for the debt?

Yes, if the lender properly obtained a lien on the car. A transfer on death (TOD) title means that it's her car to do with as she pleases — she can sell it, junk it, borrow against it, give it to someone other than you — during her lifetime. And no consent from you is needed for any of that. If she still owns it when she dies, then the TOD part of the title kicks in and transfers it to you without the need for probate.

 

[zddoodah]

My question is can a company legally take her car

Probably, but it obviously depends on the terms of the loan agreement and whether the lender properly perfected a security interest against the car.

and if they saw the tod on the car are they responsible for the debt?

Of course not. Your mother is liable for the debt. If your mother fails to pay as agreed and the lender has a properly perfected security interest, it can exercise its rights accordingly.

Trying to figure out a way for my mother to keep her car.

There is. Pay the loan as agreed.

 

[army judge]

Trying to figure out a way for my mother to keep her car.

Here's a sure fire way for mother to retain the car.

You can make up the arrearage as an act of kindness.

Once you've accomplished that, you can make any other payments on time.

That free advice I provided you is worth $2,500.

You're already ahead of the game, good on you, mate.

 

[adjusterjack]

And if the loan is not paid when she dies, they can still take the car.