Full question:
Our 19 year old son puts us in harms way of loosing our home due to being sued. He drives his friends cars without a driver's license and sometimes ours without our knowledge. He does drugs and many other things that could contribute to an accident. He lives at home and currently pays $150.00 rent. He is not on our medical insurance. Would an LLC protect us? We're not a business, but there must be a way to prevent us from loosing everything? My husband is incorporated as he is self employed.
- Category: Minors
- Subcategory: Age of Majority
- Date:
- State: California
Answer:
In California, parents can be held liable for the actions of their children. Since your son is over eighteen, he is considered an adult, but you may still face liability if he causes harm while driving. The family car doctrine can hold you responsible if you allowed him to use your vehicle, especially if you knew he was unlicensed. Additionally, under the theory of negligent entrustment, if you lend your car to someone you know is reckless or inexperienced, you could be liable for any resulting damages.
While forming an LLC may provide some level of asset protection, it is not a guaranteed solution. Courts can sometimes disregard the LLC's protection under theories like alter ego if they find that the business and personal assets are not truly separate. Therefore, it is crucial to avoid enabling your son’s risky behavior and consider seeking support for his substance use issues.
If you are concerned about liability as landlords, be aware that you could be held responsible if you knowingly allow a tenant to engage in dangerous or illegal behavior. If you decide to terminate his tenancy, California law allows you to do so with proper notice, which can be as short as three days for certain violations.
For more specific guidance, consider consulting a legal professional who can provide tailored advice based on your situation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.