Posted on: 15th Feb, 2009 11:57 am
My father added my sister to the property deed and his mortgage when he refinanced his home in 2008. My sister lives with my father (he is a quadraplegic and needs total care, plus he wanted her to be able to get the tax benefits for the mortgage interest. When doing so he was never told he would lose his total disability homestead exemption. He has had this exemption since his accident in 1990. He cannot afford to pay property taxes. A person at the tax office suggested a trust. What will this do ? Will it remove my name from the title? We live in Florida. Please respond.
Thank you,
Terri
Thank you,
Terri
I meant to say will this remove my fathers name from the title and the mortgage
Hi JrsyViolet,
In order to avail the total disability homestead exemption, you father has to be on the title to the property. But as your sister's name was added to the title, he lost this exemption. I think if your sister transfers the title back to him through a quit claim deed, he can regain the tax exemption.
As for your question whether setting up a trust will remove your father's name from title, the answer is 'no'. If he wants to avail the tax exemption by setting up a trust, he needs to set up an irrevocable trust (not a revocable one) of which he'll have to be the principal beneficiary (one who gets the property once the trust comes to an end), apart from being the settlor (one who creates the trust) i.e. he'll be both the settlor and the principal beneficiary.
In order to avail the total disability homestead exemption, you father has to be on the title to the property. But as your sister's name was added to the title, he lost this exemption. I think if your sister transfers the title back to him through a quit claim deed, he can regain the tax exemption.
As for your question whether setting up a trust will remove your father's name from title, the answer is 'no'. If he wants to avail the tax exemption by setting up a trust, he needs to set up an irrevocable trust (not a revocable one) of which he'll have to be the principal beneficiary (one who gets the property once the trust comes to an end), apart from being the settlor (one who creates the trust) i.e. he'll be both the settlor and the principal beneficiary.