The announcement of the Tesla Model 3 generated enough buzz that more than 300,000 people paid $1,000 dollars each to be on a waiting list for the chance to purchase the vehicle when it becomes available. As the car is not expected to start shipping until late in 2017, that makes it likely some on the waiting list will pass away before getting their hands on the coveted electric vehicle.
Bloomberg reported this development in “What Happens When You Die Waiting for a Tesla?”
The actuarial reality that people on the waiting list will pass away means they should be aware of what might happen to the right to purchase the vehicle in the event of death.
Everyone on the waiting list signed a contract with Tesla that explicitly states that the right to purchase a Tesla Model 3 is not transferable to another person without the prior approval of Tesla. This is included as Tesla was concerned that spots on the waiting list would be hoarded and sold at higher than retail value when the car starts shipping. Even estate permission, in Cincinnati and elsewhere, from the company must be sought to transfer the right to purchase to an heir or beneficiary.
A spokesperson for the company told Bloomberg that should someone on the waiting list pass away, Tesla would be accommodating. They would either refund the $1,000 deposit or allow a transfer of the place on the waiting list to an heir.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: Bloomberg (July 13, 2016) “What Happens When You Die Waiting for a Tesla?”