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Adult Children and Your Liability

According to Nevada law (NRS 41.440), any liability imposed upon a spouse, son, daughter, parent, or other immediate family member arising out of his or her driving and operating a motor vehicle with the permission, express or implied, of such owner is hereby imposed upon the owner of the motor vehicle, and such owner shall be liable for any damages resulting from such negligence or willful misconduct. Of course, insurance will cover an accident, but only up to the coverage limits of the insurance.

In California, a 22-year-old woman who was driving a parent’s vehicle struck and killed a woman and severely injured her two young children. A civil lawsuit was filed naming not only the daughter but also the parents, as they are also liable as owners of the vehicle.

If you have adult children (over the age of 18) for whom you have purchased a vehicle and the vehicle is titled in your name, protect your assets and avoid any potential liability by transferring title of the vehicle into that child’s name. To prevent the adult child from selling the vehicle, or taking a loan against the title, you can list yourself as a lienholder on the back of the title. Visit your local DMV for instructions on how to transfer ownership of a vehicle.