Legal Question in Real Estate Law in Florida

Re: Change Deed

You could use a quit-claim deed or a warranty deed, the latter being recommended. You would deed it to the two of you "as joint tenants with right of survivorship". (I am assuming you are single; otherwise your wife would have to sign the deed.) HOWEVER, you should be aware of some consequences: 1-The property appraiser will up your property assessment to the current fair market value. 2-Documentary stamps of $7.00 per $1000 of any otstanding mortgage(s) will be due upon recording. 3-She will not receive a full "step-up" in basis upon your death. 4-If you ever wish to sell or refinance your home, she must agree to sign the deed or mortgage. 5-If she is not living in the home, her half of the property is subject to her creditors, and if she should already have a judgment outstanding, it would become a lien on the property. 6-You will have to reapply for the homestead exemption. 7-Should I go on? You ABSOLUTELY need to consult with a knowledgeable attorney before taking such a step.

Re: Change Deed

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

You may execute a Quit Claim Deed and transfer the property to yourself for life with a remainder in your daughter. You will preserve the homestead status of your home.

By placing the property in your name for life with a remainder to your daughter, the home is protected against any claims against your homestead during her lifetime.

The property will still quailfy as your homestead exemption and limit the rise in property taxes under the Florida constitution.

Unfortunately, your daughter will have lost the opportunity to take advantage of the stepped up basis under the Internal Revenue Code which will cost her substantial monies upon the eventual sale of the residence.

I strongly suggest that you speak with a qualified real estate attorney before executing any deeds. The cost to have an attorney's advice will be minimal compared to the consequences to your daughter or you of an improper action.

Scott R. Jay, Esq.