consequences if we give a car to Mom?
My mother-in-law needed a new car 3 years ago. My husband and I were flush with income, business was good, and we bought a new car for her. Her credit is crap (bankruptcy within the past 10 years, I think) so the car was purchased in my husband's name. We have just paid it off and were thinking we would sign title over to her rather than keep it in his name while letting her drive it. It's her car anyway and we don't want the liability any more of owning it while she drives it, plus we want her off our insurance policy (she's not a good driver, and a fender bender she had last year made OUR auto insurance rates go up too).
What are the consequences if we sign the car over to her? It's a 2007 Honda Civic, Kelley Blue Book value around $11,000 or $12,000 I think ... is that some IRS threshold for gifts? If she filed for bankruptcy (I think it was 7 years ago?) can she not own assets, can they be seized? Should we have her pay us $100 for the car or something so it's a sale to her rather than a gift?
Any help appreciated ...