How to get my car back? - Family drama

I’m asking on behalf of some family friends. I’ve actually been on here months ago looking for advice for them, and now they’re back with another mess. So, their son is having major marital issues, and one of the biggest sticking points is that his wife is refusing to hand over the car keys. This has been going on for over six months now. The car is technically registered in his name, but his father is the one actually paying off the loan through Chase. I don't know how they set up the paperwork, but that's the situation. Now, the father wants to take possession of the vehicle, but since the daughter-in-law is hoarding the keys, he's stuck. The son is perfectly fine letting his dad use the car however he wants, but the old man has no way to actually get behind the wheel. First question: what’s the easiest way to transfer the title to the father while keeping the costs as low as possible?
Second thing—and this is the headache—how do you even start the car if you don't have the keys? What can be done here that won't absolutely wreck them financially?

Any advice at all would be appreciated.

neonsurfer13 said:I’m asking on behalf of some family friends. I’ve actually been on here months ago looking for advice for them, and now they’re back with another mess. So, their son is having major marital issues, and one of the biggest sticking points is that his wife is refusing to hand over the car keys. This has been going on for over six months now. The car is technically registered in his name, but his father is the one actually paying off the loan through Chase. I don't know how they set up the paperwork, but that's the situation. Now, the father wants to take possession of the vehicle, but since the daughter-in-law is hoarding the keys, he's stuck. The son is perfectly fine letting his dad use the car however he wants, but the old man has no way to actually get behind the wheel. First question: what’s the easiest way to transfer the title to the father while keeping the costs as low as possible?
Second thing—and this is the headache—how do you even start the car if you don't have the keys? What can be done here that won't absolutely wreck them financially?

Any advice at all would be appreciated.

It's simple. If the car is in the son's name, he can just gift it to his father. Get a gift deed notarized and the matter is settled. As for the keys, legally speaking, the wife has essentially stolen them. If she refuses to return property to its rightful owner, you report it to the local police department for theft. If she won't play nice, let the law handle it.👍

A few years back, things were at least somewhat predictable, though I couldn't tell you what the deal is today: if you were driving someone else's car, you technically needed a power of attorney. The cops didn't really care much because, honestly, it felt like total nonsense, but it applied even to a spouse if the car wasn't in their name. They’d just flag you at a state border checkpoint if they felt like being difficult.
I don't see the issue—what about keys? For crying out loud, she can obviously just "pick up" some keys without needing the police to step in and make it a whole thing. Or anything else like that...

Legal disclaimer:

They don't even need your keys to drag your car right out from under your nose. Just call a tow truck!

Then comes the fun part... fighting them for the keys.

Linda Reyes19 said:Legal disclaimer:

They don't even need your keys to drag your car right out from under your nose. Just call a tow truck!

Then comes the fun part... fighting them for the keys.

- figuring out how to gift it is sorted
- getting the car moved is sorted
- as for the keys, I guess there’s always someone who can cut a new one or swap the lock or whatever, regardless of what kind of ride it is

Does she have the spare keys on her too?

She’s got all the keys. It’s not even like she’s driving the thing—she just refuses to hand over the keys and lets the car sit there rotting in front of the apartment building for six months straight. Honestly, I don't get how they couldn't just get the keys back from her, but that's the mess they've managed to make for themselves. Who knows if the keys are even inside the apartment at this point?

They checked about the lock, and the mechanic told them they'd have to have the car towed there, and apparently, the whole job is going to run them about $667.

On another note, does anyone know if there's a gift tax on transfers from a father to a son?

Yeah, I mean,
anyway, if I were in this situation, I’d just head straight over to her place and take those keys back myself—and honestly, if things got heated, I wouldn't mind using a little bit of force to make sure it actually happens.
Then she can go ahead and try to sue me if she feels like it.
🙂

neonsurfer13 said:She’s got all the keys. It’s not even like she’s driving the thing—she just refuses to hand over the keys and lets the car sit there rotting in front of the apartment building for six months straight. Honestly, I don't get how they couldn't just get the keys back from her, but that's the mess they've managed to make for themselves. Who knows if the keys are even inside the apartment at this point?

They checked about the lock, and the mechanic told them they'd have to have the car towed there, and apparently, the whole job is going to run them about $667.

On another note, does anyone know if there's a gift tax on transfers from a father to a son?

When a parent gifts a car to their kid, there isn't a special tax on the transfer, but if the child is gifting a car back to the parent, then you're looking at a special tax on passenger vehicles.
How much would that even run me?
And why even bother gifting it? If the car is in their name, just leave it that way. During a messy divorce, gifting assets like that can easily be challenged as some kind of shady maneuver to hide property during the split.
They should just get the car looked at and change the locks—find someone else besides the dealership, I'm sure there's someone who won't charge an arm and a leg. Besides, what kind of car are we even talking about here?
You're being a little sketchy with this, and what about the state inspection? Only the owner can handle that, and they can't do it without the actual vehicle being there. 😎

Sandra Parker3 said:When a parent gifts a car to their kid, there isn't a special tax on the transfer, but if the child is gifting a car back to the parent, then you're looking at a special tax on passenger vehicles.
How much would that even run me?
And why even bother gifting it? If the car is in their name, just leave it that way. During a messy divorce, gifting assets like that can easily be challenged as some kind of shady maneuver to hide property during the split.
They should just get the car looked at and change the locks—find someone else besides the dealership, I'm sure there's someone who won't charge an arm and a leg. Besides, what kind of car are we even talking about here?
You're being a little sketchy with this, and what about the state inspection? Only the owner can handle that, and they can't do it without the actual vehicle being there. 😎

The special tax is 5%, right? I'd gift the car to my dad because, with all the headache this marital dispute is causing, I just don't want that car sitting around me anymore. Since nobody has the keys, the thing hasn't been driven in over six months anyway. It's a Ford Focus. I have no clue when the registration expires; maybe that's why they're looking for a way to make this happen now.
Look, their situation with the car is the least of their problems. The daughter-in-law won't even let those old folks into the house (even though it's THEIR house). They're dealing with a whole mess of issues I already laid out in this thread:

I’ve scrolled through this thread before.
Look, I’m no tax expert, so I shouldn’t be making definitive claims without actually digging into the legal code and all that. I'm assuming there are some lawyers in here who can give us the real facts, along with people who could estimate what the tax hit would look like given what cars are worth these days. Honestly, I'm just wondering if the whole transaction is even worth the headache.
You have to deal with problems as they come, otherwise they just pile up. I'm thinking about everything mentioned in that previous thread you linked, too.
And that whole situation with the car? That sounded incredibly sketchy to me. A guy letting his car sit idle for six months straight just because his wife took the keys? And then nobody even drives it? 🙂 Sorry, but something about that just doesn't add up.

neonsurfer13 said:I’m asking on behalf of some family friends. I’ve actually been on here months ago looking for advice for them, and now they’re back with another mess. So, their son is having major marital issues, and one of the biggest sticking points is that his wife is refusing to hand over the car keys. This has been going on for over six months now. The car is technically registered in his name, but his father is the one actually paying off the loan through Chase. I don't know how they set up the paperwork, but that's the situation. Now, the father wants to take possession of the vehicle, but since the daughter-in-law is hoarding the keys, he's stuck. The son is perfectly fine letting his dad use the car however he wants, but the old man has no way to actually get behind the wheel. First question: what’s the easiest way to transfer the title to the father while keeping the costs as low as possible?
Second thing—and this is the headache—how do you even start the car if you don't have the keys? What can be done here that won't absolutely wreck them financially?

Any advice at all would be appreciated.

You already have your answer. Use a Gift Deed to transfer the car from yourself to him. As for the keys, the father should just file a report with the local police department about the withheld keys. Problem solved. You asked for the simplest, least expensive route.👍

Lawrence Taylor10 said:You already have your answer. Use a Gift Deed to transfer the car from yourself to him. As for the keys, the father should just file a report with the local police department about the withheld keys. Problem solved. You asked for the simplest, least expensive route.👍

Keep in mind that if the vehicle was purchased using marital assets during the marriage, it is considered community property, regardless of whose name is actually on the title.

goldengull3 said:Keep in mind that if the vehicle was purchased using marital assets during the marriage, it is considered community property, regardless of whose name is actually on the title.

That doesn't apply here. The details at the start of the question make that perfectly clear.👍

If the car isn't going to be part of the marital assets anyway—since the dad is the one actually paying it off—then what's the point of even doing a gift transfer and getting hit with a special tax?

Sandra Parker3 said:If the car isn't going to be part of the marital assets anyway—since the dad is the one actually paying it off—then what's the point of even doing a gift transfer and getting hit with a special tax?

Because the title is in his name. Period.

Sandra Parker3 said:When a parent gifts a car to their kid, there isn't a special tax on the transfer, but if the child is gifting a car back to the parent, then you're looking at a special tax on passenger vehicles.
How much would that even run me?
And why even bother gifting it? If the car is in their name, just leave it that way. During a messy divorce, gifting assets like that can easily be challenged as some kind of shady maneuver to hide property during the split.
They should just get the car looked at and change the locks—find someone else besides the dealership, I'm sure there's someone who won't charge an arm and a leg. Besides, what kind of car are we even talking about here?
You're being a little sketchy with this, and what about the state inspection? Only the owner can handle that, and they can't do it without the actual vehicle being there. 😎

I'm pretty new to all this (just a sophomore in college), so I don't know everything, but I think you might be mistaken...
According to the IRS... heirs and recipients who are in the first line of succession with the decedent or donor qualify for TAX EXEMPTIONS. So, effectively, no tax is paid.🙂
But it looks like someone might get divorced in a way where the car becomes marital property anyway, which would make this whole gifting thing pointless...
I believe I'm right here... if not, please correct me. 😉

Parents—specifically fathers in this context—fall into the second tier of inheritance. 🙂

Vicky said:It’s all about whether the paper trail is clear. If a father takes out a personal loan from Chase just to hand the cash to his son for a car, then no, it isn't legally transparent.

If the title says the son owns the car, then legally, he owns the car. Period. Since there isn't a divorce proceeding happening here—which isn't even what we're discussing—the son can simply gift the vehicle back to his father.

Sandra Parker3 said:Parents—specifically fathers in this context—fall into the second tier of inheritance. 🙂

If that's the case, why does the law state they belong to the first tier😉?
And then list siblings and their spouses in the second?