Parents' Vehicle

71 Posts

My father has turned 90 years old recently, and is considering stopping driving soon. He has loved and cherished his vehicle since he bought it new when he retired. The vehicle is well over 25 years old now, and is in fantastic condition. I have always had a love of cars (currently own more than a few), so have always taken an interest in its upkeep, helping with maintenance, repairs and cleaning etc.
Both my parents have stated they would like me to have the vehicle at some point. This is now common knowledge amongst my siblings. Dad has taken great comfort in knowing that the vehicle will be looked after - and not sold. Whilst I don't see any financial benefit in this (I will keep the vehicle in his memory, for however long I can), I have suspicions that this won't be seen in the same way from other parties. This wasn't really a problem when the vehicle was worth £2,000. That is no longer the case, although the range of current values would be quite wide.
At the moment, all ownership matters have only been discussed verbally. My parents are looking to add a codicil to their will, to set out their wishes on significant items like this.
Now he is looking to stop driving, it raises a couple of points regarding running costs. The vehicle still needs exercising, so MOT, Tax and Insurance need to be considered. One potential route around this is to transfer the car into my name. They are happy to do this, as in their minds it bypasses the codicil requirement for this item.
My questions are two-fold:
– Would transferring the vehicle into my name at this point of their lives have any implications regarding future calculations of their estate?
– Would it be better to buy the car from them, for a nominal sum?
I am looking to do something fair and above-board and that satisfies my parent's wishes. But in the back of my mind, I do have concerns that one of my siblings will be suspicious about this, for a couple of reasons - the loss of value from the estate being the main one.
Any thoughts or comments would be appreciated.
At the moment, all ownership matters have only been discussed verbally. My parents are looking to add a codicil to their will, to set out their wishes on significant items like this.
Now he is looking to stop driving, it raises a couple of points regarding running costs. The vehicle still needs exercising, so MOT, Tax and Insurance need to be considered. One potential route around this is to transfer the car into my name. They are happy to do this, as in their minds it bypasses the codicil requirement for this item.
My questions are two-fold:
– Would transferring the vehicle into my name at this point of their lives have any implications regarding future calculations of their estate?
– Would it be better to buy the car from them, for a nominal sum?
I am looking to do something fair and above-board and that satisfies my parent's wishes. But in the back of my mind, I do have concerns that one of my siblings will be suspicious about this, for a couple of reasons - the loss of value from the estate being the main one.
Any thoughts or comments would be appreciated.
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Replies
I can fully comprehend how a sibling might cause trouble over it, having a BIL who would be very much like that - but I suspect he would end up disappointed.
Perhaps the fairest solution - if you can afford it - is that you buy the car from your parents (there are enough trade lists, to get to a fair price) and they then divide the money between the other two siblings - that way each of you gets something from it. If it sits in a garage not being routinely used, it will also quickly deteriorate and devalue further. Keeping it 'in the estate' won't improve its value over time, quite the opposite.
We ended up in a situation where we were glad if someone would take something off our hands and just get it away, rather than the money we might have got for it if we had gob-loads of time and energy to try and find a suitable buyer. Each item you give away is one less item you have to pay someone else to clear or remove for you - so that becomes its value.
If it has significant value that could be an issue.
Purchase should be arms length real current value.
So, here's the thing - I've just been on Phil Schofield's favourite car buying site, and their valuation is £350. I know they don't have any specialist knowledge, but would that be acceptable as a valuation for the vehicle, does anyone think? I know the adage "something is only worth what someone is prepared to pay", but how does this work in such a specialised area, I wonder? If this was ever challenged as a way to circumvent IHT, who gets to decide the vehicle's value?
Slightly going off track here, sorry...
But then I think I'd buy it, making sure it can be demonstrated to be a fair price for the awkward squad. Or that your father is prepared to share and defend what is ultimately HIS decision.
Car and Classic range is £1,800 to £18,990.
I'm hoping the deciding factor will be that his eldest child will be 17 soon and want a car to learn to drive, the 2 family cars being unsuitable. Hopefully they will buy a little run around and need space on the driveway.