July 16, 2025 • 29 mins
This episode intricately examines the duality of emotions and practicalities surrounding the ownership of cherished vehicles, particularly the iconic Jaguar F-Type. Caesar and Chloe relay the sense of nostalgia as they recount the visceral experience that Michael and Deborah have shared regarding their experience driving such a car, detailing not only its aesthetic allure but also the profound connection that many owners feel toward their vehicles. This emotional narrative is skillfully intertwined with the harsh realities of financial depreciation and the potential burdens that heirs may face if ownership transitions are not adequately planned. Our hosts candidly discuss the importance of recognizing a car as more than a mere asset; it embodies passion, dreams, and memories that necessitate careful consideration in estate planning.
"With all these emotional connections and stark financial realities in mind, what does this actually mean for making sure your cherished sports car gets smoothly passed on to the person you want to have it?" -Caesar [09:17]
Delving deeper into the financial aspects, the discussion elucidates the significant value that vehicles can represent, often ranking just below real estate in terms of personal wealth. However, they caution us that cars generally depreciate and may not be viewed as sound investments in the conventional sense. They stress the critical need for owners to prepare for the future transfer of these beloved vehicles, highlighting strategies such as wills, transfer-on-death provisions, and revocable living trusts that can facilitate this process. The conversation emphasizes the necessity of avoiding probate, which can impose delays and complications on heirs during already difficult times, thereby underscoring the importance of proactive estate planning.
- It is imperative to consider how cherished vehicles will be managed and transferred after one's passing to prevent complications for loved ones.
- The financial implications of owning luxury sports cars must be clearly understood, as they frequently depreciate significantly in value shortly after purchase.
- Employing strategies such as trusts or joint ownership can facilitate a smoother transfer of vehicle ownership while minimizing the risk of probate complications.
Our hosts provide listeners with actionable insights and recommendations for ensuring a smooth transition of ownership. They explore the nuances of joint ownership and the advantages of trusts in maintaining privacy and control over the vehicle after the owner's passing. Ultimately, the episode serves as a compelling reminder that the legacy of a prized automobile is a multifaceted consideration, intertwining emotional value with the practicalities of estate management. The overarching message encourages listeners to take deliberate steps to safeguard their automotive legacies, ensuring that their love for their vehicles is honored and preserved for future generations.
Chapters
- 01:34 The Thrill of a Classic Drive
- 04:38 The Emotional and Financial Connection to Vehicles
- 09:17 Navigating Inherited Assets: The Importance of Avoiding Probate
- 15:02 Exploring Estate Planning Options for Vehicles
- 23:30 Understanding Vehicle Transfers in Estate Planning
- 27:24 The Legacy of Jaguar: More Than Just a Car
Episode Resources
Episode Credits
Various fun sounds throughout this episode are either created within our studio or downloaded and licensed from Envato, with final mastering done in Seaside Records...
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(01:32):
Imagine this. You slide intothe driver's seat of a, let's say,
a pristine 1964 Jaguar S-Type.You feel that huge Bakelite steering
wheel. You inhale that amazingsmell of leather and wood. Admire
the gleaming burr walnutdashboard. And then you hear it.
That throaty roar of the 3.8liter engine. It's a feeling I've
(01:55):
heard it described asterrified and excited, out of your
mind at the same time. A dreamfulfilled. Maybe just your Sunday
outing. Car four, meanderingthrough scenic country lanes.
It's that deep, almostvisceral connection to a machine,
isn't it? We're talking abouta vehicle that's. Well, it's way
more than just transportation.
(02:15):
Definitely.
For many people, it's a pieceof their passion. A dream realized.
Exactly. But, okay, here's theinteresting and frankly, pretty practical
question that comes up. Whathappens to that cherished vehicle,
whether it's a vintage beautyor, say, a modern F-Type, when you're
no longer around?
Right? It's not just anotherasset on a spreadsheet.
(02:38):
No, it's often a legacy youwant handled with care.
And this raises a reallyimportant point for anyone who owns
a car they love, especiallysomething like a sports car. The
bigger picture here is makingsure your specific wishes are carried
out smoothly. You want toavoid complications for your loved
ones during what's already areally difficult time.
(03:00):
And that's exactly our missionfor this deep dive. We want to help
you prepare your belovedJaguar F-Type, or really any sports
car, for a seamless transferof ownership. When that time comes,
we'll unpack what you shoulddo and just as importantly, how you
should do it, to make sureyour wishes are followed and to avoid
those unnecessary headachesfor the people you leave behind.
(03:21):
Good plan.
And for this, we've gatheredinsights from estate planning attorneys,
vehicle titling experts, andeven pulled from direct discussions
among Jaguar ownersthemselves. So, hopefully, a comprehensive
but still engaging look.
Okay, let's dive in then.Let's talk about that passionate
connection first, but also thepractical realities. The emotional
(03:44):
investment is huge. It'sundeniable. Think about the woman
who wanted her dream Jaguar,that 1964 S-Type. She waited 64 years
for that dream. She's justturned 70. She has now realized her
dream Jaguar, first deliveredto a therapist in London back in
(04:05):
1965. That's history.
That story just perfectlycaptures the depth of feeling, doesn't
it? The owner talks aboutloving the huge steering wheel, sinking
into the comfy leather seat,that incredible smell of leather
and wood. The French polishedburr walnut dash those beautiful
Smith's gauges it evokes asshe shares a nostalgic time when
(04:27):
class, elegance and purecraftsmanship was truly something
that mattered and somethingthat got you noticed, along with
the respect due you. For her,it's that perfect Sunday outing car
for leisurely drives.
And while that emotional sideis paramount for the owner, the the
financial picture is also areally significant consideration.
Something often overlooked isthat a vehicle can actually be the
(04:50):
second most valuable piece ofproperty an American owns, right
after their house.
Wow, I didn't realize it wasoften that high. But financially
speaking, it's not alwayssimple, is it? For tax purposes,
cars are generally seen aswasting assets, right?
A useful life of 50 years orless is the thinking.
(05:10):
Which means they're usuallyexempt from capital gains tax. That
sounds good.
It does. But the flip side isthat losses from selling a car aren't
allowable either.
Ah, ok.
So the key takeaway there iswhile your F-Type might be your passion,
it's probably not a financialinvestment in the traditional sense.
(05:32):
You're unlikely to get taxfree gains or allowable losses when
it's transferred or sold.
And that reality hits homeparticularly hard when we look at
models like the Jaguar F-Type.They are frankly notorious for a
significant depreciation rightoff the dealership lot.
Yeah, they really are. Somesources speculate what a 40, 50%
(05:53):
drop from sticker price injust five years, maybe even 40, 60%
in only three years.
Ouch.
Yeah. Here is a real worldexample for you to chew on a bit.
I heard a story of someone whobought a 2015 V6F-Type for 39,000
in 2020. By the time it hit26,000 miles, its value was estimated
(06:17):
at only 28,000 to 30,000. Thatis a loss of 9 to 11,000 dollars.
So the advice you hear a lotfrom Jaguar enthusiasts makes sense.
Buy a barely used one and saveyourself a ton of money up front.
Which naturally leads to thatbig question many owners wrestle
with regarding their F-Typeand investment. Will the F-Type ever
(06:38):
be a true collector's car? Youknow, will its value hold or even
go up? Some hope its status asthe last gas powered Jag might help.
It's a hope, yeah. But manypeople in the Jaguar community are
pretty skeptical about itbeing a significant financial investment.
They point out that Jaguarshistorically don't tend to appreciate
(07:00):
much in value except.
For the E-Type. Right.
That's the famous exception.That's the big one. Went from maybe
5,000 in 1970 to well over100,000 today, and sometimes much
more. People mention thingslike the S-Type are a great car to
drive and investment indriving pleasure definitely not financial
(07:24):
gain.
And looking even furtherahead, there's that looming concern
maybe 30 or 40 years down theroad, will gasoline engines even
be allowed? Or electronicobsolescence? Could these cars be
unfixable because computersdie? Or parts just aren't made anymore?
Those are really validconcerns. They raise crucial questions
(07:44):
about the car's long termviability and frankly, what kind
of asset or maybe burdenyou're actually leaving behind.
Which brings us right to thatkey question from the inheritor's
point of view. Is thatbeautiful F-Type you leave behind
a welcome gift or could itpotentially be, well, a bit of a
burden?
Yeah, there was thisinteresting discussion thread online
(08:06):
about using inherited money.The consensus seemed to be that while
spending it on a car isn'tnecessarily wrong, it might not be
the wisest move simply becausecars generally lose value.
Right? There's always thatcautionary tale. Like the lottery
winner who blew 10 million oncars and trips and was broke in 10
years.
(08:27):
Exactly. Many people suggestedinvesting in property stocks, mutual
funds, or using theinheritance for something substantial
you otherwise couldn't afford.Like a down payment on a house.
Rather than luxury goods thatmostly just appreciate.
Precisely. It really boilsdown to treating inherited money
(08:48):
with the same respect youtreat your own hard earned cash.
Avoid the easy come, easy go mindset.
Makes sense.
Yeah, the idea is that theperson inheriting should think about
what makes the most sense fortheir own long term financial health.
Maybe that's a house, maybeit's investments, maybe it's even
(09:10):
just a reliable family car,rather than immediately pouring it
into something that's likelyto go down in value.
Okay, with all these emotionalconnections and stark financial realities
in mind, what does thisactually mean for making sure your
cherished sports car getssmoothly passed on to the person
you want to have it?
Well, the core challenge here,and you'll hear us stress this, is
(09:32):
avoiding probate. If you can.
Right. Probate. Explain that quickly.
Probate is basically the courtsupervised process of settling an
estate. It can be really timeconsuming and expensive, and it often
involves paying off anyoutstanding debts from the estate
before assets like your carcan be transferred. This means delays,
(09:55):
extra costs for your lovedones and hassle. Big hassle. Plus
another point people oftenprobate records are public, so avoiding
probate also gives your estatea layer of privacy.
Okay, so avoiding probate iskey. This is where the planning really
(10:16):
matters because there areseveral strategies you can actually
use to make this transfersmoother and more efficient for your
F-Type. Or really any car?
Definitely. First off, themost obvious one. Perhaps using a
will, you can absolutely statein your will who should inherit your
F-Type.
Simple enough.
But be aware that even with awill, the car might still have to
(10:38):
go through probate. It dependson your state's laws and the total
value of your estate.
Ah, ok, so AWOL isn't aguarantee against probate for the
car itself.
Many states let you name a TODbeneficiary right there.
Tod. How does that work practically?
Well, you typically apply fora special beneficiary form, certificate
(11:01):
of title. It lists the person,or you can sometimes list multiple
people who will get the car.And crucially, while you're alive,
the beneficiary has zerorights to the car.
So I still own it completely?
Completely. You're totallyfree to sell it, give it away, trade
it in, or even just changeyour mind and name a different beneficiary
(11:24):
later.
That sounds flexible. Arethere catches state differences?
Yes. Many states allow TOD forvehicles, but the specific rules
can differ quite a bit,especially around how it works if
the car is jointly owned.
Ah, like if I have a spouseand my spouse and I own it together.
Exactly. Are you married? Caesar?
(13:14):
Got it. And I'll say theanswer to whether I'm married or
not to after the show. Andwhat about community property states?
Places like California, Arizona?
Good point. In communityproperty states, assets acquired
during marriage are typicallyowned equally. So if the car is community
(13:35):
property, it's vital to getyour spouse's written consent if
you're naming someone else asthe TOD beneficiary.
And keep that consent safewith other important papers?
Absolutely. Store it with yourwill, the title, things like that.
What if I set up a TOD andthen change my mind later?
You can revoke it, but only byeither selling the vehicle or by
(13:57):
applying for a completely newcertificate of ownership that either
names no beneficiary or namesa different one.
So I can't just writesomething different in my will?
No, you cannot revoke a TODdesignation just by leaving the car
to someone else in your will,or even in a living trust. The TOD
designation on the titleitself overrides those other documents
(14:20):
for that specific vehicle.
Ok, that's important to know.So after the owner passes, what does
the beneficiary do?
It's usually prettystraightforward. They submit an application
for a new title, provide theold title if they have it, and show
a certified copy of the deathcertificate to the State's motor
vehicle agency, you know, theDMV or MVD or whatever the acronym
(14:45):
is for that state.
And any loans on the car.
Ah, yes. Also important, thebeneficiary inherits the car along
with any outstanding loans orliens against it. They'll need to
arrange to pay that off or refinance.
Ok, what's another strategybesides tod?
(15:06):
A third effective approach isjoint ownership with right of survivorship.
If you co own the F-Type withsomeone, maybe your spouse, and the
title is set up this way,often abbreviated as JTW or os, then
when one owner dies, thesurviving owner automatically becomes
the sole owner.
And that avoids probate too.
(15:28):
Completely bypasses probatefor that asset. Very smooth transition
for the surviving owner.
Alright. And option four? Ithink you mentioned trusts earlier.
Yes. The fourth option, whichoffers much broader estate planning
benefits, is using a revocableliving trust. You can actually transfer
(15:49):
the ownership of your F-Typeinto the trust.
So the trust owns the car? Notme directly.
Technically, yes, the trustbecomes the legal owner. But because
it's a revocable living trust,you remain the trustee and beneficiary
during your lifetime. So youmaintain complete control. And the
(16:10):
big payoff? Assets held in thetrust avoid probate when you pass
away.
And you mentioned privacy too, right?
That's a major advantage.Probate is public record. Trusts
are private, so it keeps yourestate details confidential. Plus
a trust gives you enormouscontrol. You can spell out exactly
(16:33):
how the car should be managedor distributed. Maybe you want it
kept for a few years, maybesold, maybe given to a specific person
under certain conditions.
Sounds powerful. Are theredownsides or complications with putting
a car in a trust?
There can be some nuances.State laws vary. For instance, in
(16:55):
some states there might besimplified, easier probate processes,
specifically for vehicles.Especially if you leave everything
to a surviving spouse. In thatcase, the complexity of a trust might
be overkill. Just for the car.
Okay, what else?
(18:32):
Well, logistically you have toactually go to the DMV and retitle
the car in the name of thetrust. That usually means some paperwork
and fees. And definitely talkto your car insurance company. They'll
need to know the trust ownsthe car. And they might have specific
requirements or need updated documentation.
(18:55):
Does the type of car matter?Like a classic versus a daily driver?
It can. High value orcollectible vehicles, like maybe
that classic S-Type mightwarrant special consideration within
the trust documents. Also akey point, you generally should not
put business vehicles intoyour personal living trust. That
(19:18):
needs separate planning.
And I remember readingsomething about not Wanting to commingle
assets in a trust, likeputting a car, which could be involved
in an accident, next to your house.
Yeah, that's a more advancedconsideration. Some planners advise
against putting hot assets,things with higher liability risk,
like cars or rentalproperties, in the same trust as
(19:40):
safe assets like your primaryhome or investments. Sometimes separate
trusts are used.
Ok. And Medicaid. Any issues there?
Potentially, yes. If Medicaideligibility might be a factor for
you or your spouse down theroad, you need to be careful. Usually
(20:01):
one vehicle is exempt fromasset calculations for Medicaid.
Transferring it into a trustcould complicate that. Definitely
needs advice from an elder lawor a state planning attorney if Medicaid
is part of your long term thinking.
But where trusts really seemto shine is protecting the inheritance
itself right from thebeneficiary, maybe not handling it
(20:24):
well?
Absolutely. This is a hugebenefit. A well drafted trust can
protect the inheritance from abeneficiary's potential bad decisions.
Think about things likedivorce. Assets held in a properly
structured trust are typicallynot considered marital property.
Ah, interesting.
(20:45):
It can also shield theinheritance from the beneficiary's
creditors thanks to somethingcalled a spendthrift clause. Even
protects against bankruptcy.
So you could theoreticallyprevent your heir from immediately
spending the value of theF-Type on, say, another F-Type.
You could. You can setconditions. You can specify when
(21:07):
they get access to the fundsor the asset. Maybe staggered distributions.
Maybe only after reaching acertain age, like 30 or 35.
Wow.
And you can specify how thefunds can be used, maybe only for
education or buying a house orhealth care or travel. It gives you
(21:27):
incredible posthumous controlto ensure your gift is used wisely
according to your values.
Okay, that's a lot of control.What about just giving the car away
while you're still alive?
That's a fifth option. Giftingthe vehicle during your lifetime.
It definitely avoids probate,avoids trust complexities. But you
(21:49):
lose control immediately. Onceyou sign over that title, it's gone.
It's theirs.
And taxes are there gift tax issues?
There can be, yes. Tax rulesvary significantly by country and
even state.
Well, in the uk there's oftentalk about inheritance tax or estate
(22:11):
tax.
True, Caesar, Yeah. It mightstill be counted in your estate for
tax purposes.
So you can't just pretend togive it away.
Not usually, no. Unlessperhaps you pay the new owner actual
market rent for using the car.That rent would be taxable ine for
them, but it might be lessthan the potential inheritance tax.
(22:34):
Storage location can evenmatter. It gets complicated.
So if you die within thatseven year window in the uk for example,
then tax might be due,although sometimes it papers off
after three years.
And importantly, the valuetaxed is usually the car's value
at the time you made the gift,not its potentially higher or lower
(22:55):
value when you pass away atthe end.
This all sounds, well, complicated.
It really can be, whichunderscores the main point. Seeking
professional guidance isabsolutely critical. Estate planning
is often a confusing andoverwhelming process. Every situation
is unique. You really need toconsult an experienced estate planning
(23:18):
attorney in your jurisdiction.They can explain your state's specific
laws, look at your overallfinancial picture, your family situation
and recommend the beststrategy for you. Or whether it's
tod, joint ownership, a trustor something else for your F-Type
and other assets.
And many firms offer freeinitial consultations, right? So
(23:41):
it's worth exploring.
Definitely. Don't try to DIYcomplex estate planning, especially
with valuable assets.
Beyond the lawyer what aresome key practical details people
need to remember for thevehicle transfer itself?
Okay, some brass tacks.Always, always verify the specific
vehicle title transfer rulesand requirements with your local
(24:04):
DMV or Secretary of State'soffice. Don't rely on general advice.
Check your state's exact procedures.
Good point. What about loans?
Crucial if your F-Type has anoutstanding loan that must be addressed
in your estate plan, the loanlikely needs to be paid off from
(24:25):
the estate funds or theinheritor needs to qualify to assume
it before the title can befully transferred, free and clear.
And insurance?
Yes. Inform your insurancecompany about any change in ownership
structure, like putting it ina trust, and make sure the beneficiary
knows they need to get theirown insurance immediately upon inheriting
(24:47):
it to ensure continuous propercoverage. Don't let it lapse.
What if the actual paper titlegets lost? Can the car still be transferred
after death?
Yes, it usually can be. Theexecutor or beneficiary typically
needs to apply for a duplicatetitle from the dmv, providing the
(25:08):
owner's death certificate andproof of their relationship or authority.
But that probably adds delays.
It absolutely can add delays,especially if the vehicle ends up
going through probate anyway.Probate itself can take months, sometimes
even years, and dealing with alost title on top of that just slows
(25:28):
things down further. Keep yourtitles safe.
Ok, one last area to touch on.The Jaguar brand itself is changing,
isn't it? How might that playinto this?
It's a really interestingpoint. Jaguar is in the midst of
this huge reimagined strategy.They're aiming to be entirely electric
(25:51):
by 2039 and achieve carbon netzero status.
So no more gas powered Jags. Eventually.
That's the plan now forcurrent owners and their potential
heirs. Jaguar assures everyonethat the service network will remain
fully operational for existingcars. Parts will continue to be available,
(26:11):
warranties honored, softwareupdates provided.
So the car will still be supported?
Yes, that's the commitment.But what's fascinating is the perception
side. The recent rebrand andnew advertising campaigns, well,
they've stirred up quite a bitof debate among current owners.
How so?
(26:32):
Some owners feel the new adsare maybe too woke or tacky, focusing
more on lifestyle like aperfume or fashion brand, often without
even showing a car. Others seeit as a necessary, maybe overdue
move to broaden the brand'sappeal beyond that traditional old
man's car stereotype. Theyacknowledge the old strategy wasn't
(26:53):
exactly selling huge numbersof cars.
So this brand evolution, howdoes that connect back to inheritance?
Well, it highlights how abrand's image and direction can subtly
influence how an heir mightfeel about the car long term. Their
connection to it, maybe evenhow they perceive its value isn't
just about the metal, leatherand engine. It's also tied into the
(27:16):
badge and what it represents.
Interesting. So the brandstory itself be part of the legacy?
It can, yeah. It's a reminderthat the emotional value, not just
the financial value, can beinfluenced by these broader shifts
in brand identity and market perception.
So this whole deep dive reallyshows that planning for the transfer
(27:37):
of a cherished car like aJaguar F-Type is, well, it's way
more than just paperwork,isn't it?
Absolutely. It's abouthonoring that deep connection you
have with the car. Navigatingthe real world financial stuff like
depreciation and potentialtaxes. And most importantly, thinking
carefully about the future foryour loved ones.
(27:58):
Making sure that passion youpoured into the car be a well managed
legacy for them, not anunexpected burden or source of stress.
And my hope is that no onewill need it as everyone will have
such perfect health andenjoying their Sunday drives every
day in the Jaguar F-Types.
That give us something tothink about over the next week, doesn't
it Chloe?
(28:19):
Sure does, Caesar. I knowMichael and Deborah are in their
Black Beauty Jag.
Don't forget Trudy.
Oh, never. She is there alongfor the ride too.
Okay, see you all in the nextepisode of Black Beauty Jag.
Imagine this. You slide intothe driver's seat of a, let's say,
a pristine 1964 Jaguar S-Type.You feel that huge Bakelite steering
wheel. You inhale that amazingsmell of leather and wood. Admire
the gleaming burr walnutdashboard. And then you hear it.
That throaty roar of the 3.8liter engine. It's a feeling I've
(01:55):
heard it described asterrified and excited, out of your
mind at the same time. A dreamfulfilled. Maybe just your Sunday
outing. Car four, meanderingthrough scenic country lanes.
It's that deep, almostvisceral connection to a machine,
isn't it? We're talking abouta vehicle that's. Well, it's way
more than just transportation.
(02:15):
Definitely.
For many people, it's a pieceof their passion. A dream realized.
Exactly. But, okay, here's theinteresting and frankly, pretty practical
question that comes up. Whathappens to that cherished vehicle,
whether it's a vintage beautyor, say, a modern F-Type, when you're
no longer around?
Right? It's not just anotherasset on a spreadsheet.
(02:38):
No, it's often a legacy youwant handled with care.
And this raises a reallyimportant point for anyone who owns
a car they love, especiallysomething like a sports car. The
bigger picture here is makingsure your specific wishes are carried
out smoothly. You want toavoid complications for your loved
ones during what's already areally difficult time.
(03:00):
And that's exactly our missionfor this deep dive. We want to help
you prepare your belovedJaguar F-Type, or really any sports
car, for a seamless transferof ownership. When that time comes,
we'll unpack what you shoulddo and just as importantly, how you
should do it, to make sureyour wishes are followed and to avoid
those unnecessary headachesfor the people you leave behind.
(03:21):
Good plan.
And for this, we've gatheredinsights from estate planning attorneys,
vehicle titling experts, andeven pulled from direct discussions
among Jaguar ownersthemselves. So, hopefully, a comprehensive
but still engaging look.
Okay, let's dive in then.Let's talk about that passionate
connection first, but also thepractical realities. The emotional
(03:44):
investment is huge. It'sundeniable. Think about the woman
who wanted her dream Jaguar,that 1964 S-Type. She waited 64 years
for that dream. She's justturned 70. She has now realized her
dream Jaguar, first deliveredto a therapist in London back in
(04:05):
1965. That's history.
That story just perfectlycaptures the depth of feeling, doesn't
it? The owner talks aboutloving the huge steering wheel, sinking
into the comfy leather seat,that incredible smell of leather
and wood. The French polishedburr walnut dash those beautiful
Smith's gauges it evokes asshe shares a nostalgic time when
(04:27):
class, elegance and purecraftsmanship was truly something
that mattered and somethingthat got you noticed, along with
the respect due you. For her,it's that perfect Sunday outing car
for leisurely drives.
And while that emotional sideis paramount for the owner, the the
financial picture is also areally significant consideration.
Something often overlooked isthat a vehicle can actually be the
(04:50):
second most valuable piece ofproperty an American owns, right
after their house.
Wow, I didn't realize it wasoften that high. But financially
speaking, it's not alwayssimple, is it? For tax purposes,
cars are generally seen aswasting assets, right?
A useful life of 50 years orless is the thinking.
(05:10):
Which means they're usuallyexempt from capital gains tax. That
sounds good.
It does. But the flip side isthat losses from selling a car aren't
allowable either.
Ah, ok.
So the key takeaway there iswhile your F-Type might be your passion,
it's probably not a financialinvestment in the traditional sense.
(05:32):
You're unlikely to get taxfree gains or allowable losses when
it's transferred or sold.
And that reality hits homeparticularly hard when we look at
models like the Jaguar F-Type.They are frankly notorious for a
significant depreciation rightoff the dealership lot.
Yeah, they really are. Somesources speculate what a 40, 50%
(05:53):
drop from sticker price injust five years, maybe even 40, 60%
in only three years.
Ouch.
Yeah. Here is a real worldexample for you to chew on a bit.
I heard a story of someone whobought a 2015 V6F-Type for 39,000
in 2020. By the time it hit26,000 miles, its value was estimated
(06:17):
at only 28,000 to 30,000. Thatis a loss of 9 to 11,000 dollars.
So the advice you hear a lotfrom Jaguar enthusiasts makes sense.
Buy a barely used one and saveyourself a ton of money up front.
Which naturally leads to thatbig question many owners wrestle
with regarding their F-Typeand investment. Will the F-Type ever
(06:38):
be a true collector's car? Youknow, will its value hold or even
go up? Some hope its status asthe last gas powered Jag might help.
It's a hope, yeah. But manypeople in the Jaguar community are
pretty skeptical about itbeing a significant financial investment.
They point out that Jaguarshistorically don't tend to appreciate
(07:00):
much in value except.
For the E-Type. Right.
That's the famous exception.That's the big one. Went from maybe
5,000 in 1970 to well over100,000 today, and sometimes much
more. People mention thingslike the S-Type are a great car to
drive and investment indriving pleasure definitely not financial
(07:24):
gain.
And looking even furtherahead, there's that looming concern
maybe 30 or 40 years down theroad, will gasoline engines even
be allowed? Or electronicobsolescence? Could these cars be
unfixable because computersdie? Or parts just aren't made anymore?
Those are really validconcerns. They raise crucial questions
(07:44):
about the car's long termviability and frankly, what kind
of asset or maybe burdenyou're actually leaving behind.
Which brings us right to thatkey question from the inheritor's
point of view. Is thatbeautiful F-Type you leave behind
a welcome gift or could itpotentially be, well, a bit of a
burden?
Yeah, there was thisinteresting discussion thread online
(08:06):
about using inherited money.The consensus seemed to be that while
spending it on a car isn'tnecessarily wrong, it might not be
the wisest move simply becausecars generally lose value.
Right? There's always thatcautionary tale. Like the lottery
winner who blew 10 million oncars and trips and was broke in 10
years.
(08:27):
Exactly. Many people suggestedinvesting in property stocks, mutual
funds, or using theinheritance for something substantial
you otherwise couldn't afford.Like a down payment on a house.
Rather than luxury goods thatmostly just appreciate.
Precisely. It really boilsdown to treating inherited money
(08:48):
with the same respect youtreat your own hard earned cash.
Avoid the easy come, easy go mindset.
Makes sense.
Yeah, the idea is that theperson inheriting should think about
what makes the most sense fortheir own long term financial health.
Maybe that's a house, maybeit's investments, maybe it's even
(09:10):
just a reliable family car,rather than immediately pouring it
into something that's likelyto go down in value.
Okay, with all these emotionalconnections and stark financial realities
in mind, what does thisactually mean for making sure your
cherished sports car getssmoothly passed on to the person
you want to have it?
Well, the core challenge here,and you'll hear us stress this, is
(09:32):
avoiding probate. If you can.
Right. Probate. Explain that quickly.
Probate is basically the courtsupervised process of settling an
estate. It can be really timeconsuming and expensive, and it often
involves paying off anyoutstanding debts from the estate
before assets like your carcan be transferred. This means delays,
(09:55):
extra costs for your lovedones and hassle. Big hassle. Plus
another point people oftenprobate records are public, so avoiding
probate also gives your estatea layer of privacy.
Okay, so avoiding probate iskey. This is where the planning really
(10:16):
matters because there areseveral strategies you can actually
use to make this transfersmoother and more efficient for your
F-Type. Or really any car?
Definitely. First off, themost obvious one. Perhaps using a
will, you can absolutely statein your will who should inherit your
F-Type.
Simple enough.
But be aware that even with awill, the car might still have to
(10:38):
go through probate. It dependson your state's laws and the total
value of your estate.
Ah, ok, so AWOL isn't aguarantee against probate for the
car itself.
Many states let you name a TODbeneficiary right there.
Tod. How does that work practically?
Well, you typically apply fora special beneficiary form, certificate
(11:01):
of title. It lists the person,or you can sometimes list multiple
people who will get the car.And crucially, while you're alive,
the beneficiary has zerorights to the car.
So I still own it completely?
Completely. You're totallyfree to sell it, give it away, trade
it in, or even just changeyour mind and name a different beneficiary
(11:24):
later.
That sounds flexible. Arethere catches state differences?
Yes. Many states allow TOD forvehicles, but the specific rules
can differ quite a bit,especially around how it works if
the car is jointly owned.
Ah, like if I have a spouseand my spouse and I own it together.
Exactly. Are you married? Caesar?
(13:14):
Got it. And I'll say theanswer to whether I'm married or
not to after the show. Andwhat about community property states?
Places like California, Arizona?
Good point. In communityproperty states, assets acquired
during marriage are typicallyowned equally. So if the car is community
(13:35):
property, it's vital to getyour spouse's written consent if
you're naming someone else asthe TOD beneficiary.
And keep that consent safewith other important papers?
Absolutely. Store it with yourwill, the title, things like that.
What if I set up a TOD andthen change my mind later?
You can revoke it, but only byeither selling the vehicle or by
(13:57):
applying for a completely newcertificate of ownership that either
names no beneficiary or namesa different one.
So I can't just writesomething different in my will?
No, you cannot revoke a TODdesignation just by leaving the car
to someone else in your will,or even in a living trust. The TOD
designation on the titleitself overrides those other documents
(14:20):
for that specific vehicle.
Ok, that's important to know.So after the owner passes, what does
the beneficiary do?
It's usually prettystraightforward. They submit an application
for a new title, provide theold title if they have it, and show
a certified copy of the deathcertificate to the State's motor
vehicle agency, you know, theDMV or MVD or whatever the acronym
(14:45):
is for that state.
And any loans on the car.
Ah, yes. Also important, thebeneficiary inherits the car along
with any outstanding loans orliens against it. They'll need to
arrange to pay that off or refinance.
Ok, what's another strategybesides tod?
(15:06):
A third effective approach isjoint ownership with right of survivorship.
If you co own the F-Type withsomeone, maybe your spouse, and the
title is set up this way,often abbreviated as JTW or os, then
when one owner dies, thesurviving owner automatically becomes
the sole owner.
And that avoids probate too.
(15:28):
Completely bypasses probatefor that asset. Very smooth transition
for the surviving owner.
Alright. And option four? Ithink you mentioned trusts earlier.
Yes. The fourth option, whichoffers much broader estate planning
benefits, is using a revocableliving trust. You can actually transfer
(15:49):
the ownership of your F-Typeinto the trust.
So the trust owns the car? Notme directly.
Technically, yes, the trustbecomes the legal owner. But because
it's a revocable living trust,you remain the trustee and beneficiary
during your lifetime. So youmaintain complete control. And the
(16:10):
big payoff? Assets held in thetrust avoid probate when you pass
away.
And you mentioned privacy too, right?
That's a major advantage.Probate is public record. Trusts
are private, so it keeps yourestate details confidential. Plus
a trust gives you enormouscontrol. You can spell out exactly
(16:33):
how the car should be managedor distributed. Maybe you want it
kept for a few years, maybesold, maybe given to a specific person
under certain conditions.
Sounds powerful. Are theredownsides or complications with putting
a car in a trust?
There can be some nuances.State laws vary. For instance, in
(16:55):
some states there might besimplified, easier probate processes,
specifically for vehicles.Especially if you leave everything
to a surviving spouse. In thatcase, the complexity of a trust might
be overkill. Just for the car.
Okay, what else?
(18:32):
Well, logistically you have toactually go to the DMV and retitle
the car in the name of thetrust. That usually means some paperwork
and fees. And definitely talkto your car insurance company. They'll
need to know the trust ownsthe car. And they might have specific
requirements or need updated documentation.
(18:55):
Does the type of car matter?Like a classic versus a daily driver?
It can. High value orcollectible vehicles, like maybe
that classic S-Type mightwarrant special consideration within
the trust documents. Also akey point, you generally should not
put business vehicles intoyour personal living trust. That
(19:18):
needs separate planning.
And I remember readingsomething about not Wanting to commingle
assets in a trust, likeputting a car, which could be involved
in an accident, next to your house.
Yeah, that's a more advancedconsideration. Some planners advise
against putting hot assets,things with higher liability risk,
like cars or rentalproperties, in the same trust as
(19:40):
safe assets like your primaryhome or investments. Sometimes separate
trusts are used.
Ok. And Medicaid. Any issues there?
Potentially, yes. If Medicaideligibility might be a factor for
you or your spouse down theroad, you need to be careful. Usually
(20:01):
one vehicle is exempt fromasset calculations for Medicaid.
Transferring it into a trustcould complicate that. Definitely
needs advice from an elder lawor a state planning attorney if Medicaid
is part of your long term thinking.
But where trusts really seemto shine is protecting the inheritance
itself right from thebeneficiary, maybe not handling it
(20:24):
well?
Absolutely. This is a hugebenefit. A well drafted trust can
protect the inheritance from abeneficiary's potential bad decisions.
Think about things likedivorce. Assets held in a properly
structured trust are typicallynot considered marital property.
Ah, interesting.
(20:45):
It can also shield theinheritance from the beneficiary's
creditors thanks to somethingcalled a spendthrift clause. Even
protects against bankruptcy.
So you could theoreticallyprevent your heir from immediately
spending the value of theF-Type on, say, another F-Type.
You could. You can setconditions. You can specify when
(21:07):
they get access to the fundsor the asset. Maybe staggered distributions.
Maybe only after reaching acertain age, like 30 or 35.
Wow.
And you can specify how thefunds can be used, maybe only for
education or buying a house orhealth care or travel. It gives you
(21:27):
incredible posthumous controlto ensure your gift is used wisely
according to your values.
Okay, that's a lot of control.What about just giving the car away
while you're still alive?
That's a fifth option. Giftingthe vehicle during your lifetime.
It definitely avoids probate,avoids trust complexities. But you
(21:49):
lose control immediately. Onceyou sign over that title, it's gone.
It's theirs.
And taxes are there gift tax issues?
There can be, yes. Tax rulesvary significantly by country and
even state.
Well, in the uk there's oftentalk about inheritance tax or estate
(22:11):
tax.
True, Caesar, Yeah. It mightstill be counted in your estate for
tax purposes.
So you can't just pretend togive it away.
Not usually, no. Unlessperhaps you pay the new owner actual
market rent for using the car.That rent would be taxable ine for
them, but it might be lessthan the potential inheritance tax.
(22:34):
Storage location can evenmatter. It gets complicated.
So if you die within thatseven year window in the uk for example,
then tax might be due,although sometimes it papers off
after three years.
And importantly, the valuetaxed is usually the car's value
at the time you made the gift,not its potentially higher or lower
(22:55):
value when you pass away atthe end.
This all sounds, well, complicated.
It really can be, whichunderscores the main point. Seeking
professional guidance isabsolutely critical. Estate planning
is often a confusing andoverwhelming process. Every situation
is unique. You really need toconsult an experienced estate planning
(23:18):
attorney in your jurisdiction.They can explain your state's specific
laws, look at your overallfinancial picture, your family situation
and recommend the beststrategy for you. Or whether it's
tod, joint ownership, a trustor something else for your F-Type
and other assets.
And many firms offer freeinitial consultations, right? So
(23:41):
it's worth exploring.
Definitely. Don't try to DIYcomplex estate planning, especially
with valuable assets.
Beyond the lawyer what aresome key practical details people
need to remember for thevehicle transfer itself?
Okay, some brass tacks.Always, always verify the specific
vehicle title transfer rulesand requirements with your local
(24:04):
DMV or Secretary of State'soffice. Don't rely on general advice.
Check your state's exact procedures.
Good point. What about loans?
Crucial if your F-Type has anoutstanding loan that must be addressed
in your estate plan, the loanlikely needs to be paid off from
(24:25):
the estate funds or theinheritor needs to qualify to assume
it before the title can befully transferred, free and clear.
And insurance?
Yes. Inform your insurancecompany about any change in ownership
structure, like putting it ina trust, and make sure the beneficiary
knows they need to get theirown insurance immediately upon inheriting
(24:47):
it to ensure continuous propercoverage. Don't let it lapse.
What if the actual paper titlegets lost? Can the car still be transferred
after death?
Yes, it usually can be. Theexecutor or beneficiary typically
needs to apply for a duplicatetitle from the dmv, providing the
(25:08):
owner's death certificate andproof of their relationship or authority.
But that probably adds delays.
It absolutely can add delays,especially if the vehicle ends up
going through probate anyway.Probate itself can take months, sometimes
even years, and dealing with alost title on top of that just slows
(25:28):
things down further. Keep yourtitles safe.
Ok, one last area to touch on.The Jaguar brand itself is changing,
isn't it? How might that playinto this?
It's a really interestingpoint. Jaguar is in the midst of
this huge reimagined strategy.They're aiming to be entirely electric
(25:51):
by 2039 and achieve carbon netzero status.
So no more gas powered Jags. Eventually.
That's the plan now forcurrent owners and their potential
heirs. Jaguar assures everyonethat the service network will remain
fully operational for existingcars. Parts will continue to be available,
(26:11):
warranties honored, softwareupdates provided.
So the car will still be supported?
Yes, that's the commitment.But what's fascinating is the perception
side. The recent rebrand andnew advertising campaigns, well,
they've stirred up quite a bitof debate among current owners.
How so?
(26:32):
Some owners feel the new adsare maybe too woke or tacky, focusing
more on lifestyle like aperfume or fashion brand, often without
even showing a car. Others seeit as a necessary, maybe overdue
move to broaden the brand'sappeal beyond that traditional old
man's car stereotype. Theyacknowledge the old strategy wasn't
(26:53):
exactly selling huge numbersof cars.
So this brand evolution, howdoes that connect back to inheritance?
Well, it highlights how abrand's image and direction can subtly
influence how an heir mightfeel about the car long term. Their
connection to it, maybe evenhow they perceive its value isn't
just about the metal, leatherand engine. It's also tied into the
(27:16):
badge and what it represents.
Interesting. So the brandstory itself be part of the legacy?
It can, yeah. It's a reminderthat the emotional value, not just
the financial value, can beinfluenced by these broader shifts
in brand identity and market perception.
So this whole deep dive reallyshows that planning for the transfer
(27:37):
of a cherished car like aJaguar F-Type is, well, it's way
more than just paperwork,isn't it?
Absolutely. It's abouthonoring that deep connection you
have with the car. Navigatingthe real world financial stuff like
depreciation and potentialtaxes. And most importantly, thinking
carefully about the future foryour loved ones.
(27:58):
Making sure that passion youpoured into the car be a well managed
legacy for them, not anunexpected burden or source of stress.
And my hope is that no onewill need it as everyone will have
such perfect health andenjoying their Sunday drives every
day in the Jaguar F-Types.
That give us something tothink about over the next week, doesn't
it Chloe?
(28:19):
Sure does, Caesar. I knowMichael and Deborah are in their
Black Beauty Jag.
Don't forget Trudy.
Oh, never. She is there alongfor the ride too.
Okay, see you all in the nextepisode of Black Beauty Jag.
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