Legal Question in Real Estate Law in Florida

Re: Establishing a Trust

I doubt a trust will effectively achieve your goals. The information you proved in isufficient for a proper reply.

Re: Establishing a Trust

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 can accomplish your goals by several ways. The first is to have your grandmother make/enter into a living trust and place this property into the trust. A living trust is a complex instrument and the drafting of a living trust is often quite costly.

The second method would be to have your grandmother sign a Quit Claim Deed to herself for life with a remainder to you and your husband. This is far less complicated and much less costly. Your grandmother will continue to own the property during her life and you will then own the property upon her death. There is a drawback, however. By transferring the property with this "quick and easy" method, you are losing the advantage of a stepped up basis in the value of the property upon your grandmother's demise.

The third and preferrable choice is for your grandmother to simply change her will and have this property bequeathed to you and your husband upon her demise. You will then own the property and your basis (value for tax purposes) will be the value on the date of her death.

As you can see, there are several ways to resolve your situation. I strongly suggest you meet with a qualified attorney to review this matter who can then help you with your chosen method.

Scott R. Jay, Esq., 305-249-8000

Re: Establishing a Trust

The answer you received from Mr. Jay pretty well covers the possibilities. Although setting up a trust is not quite as costly and complex as he indicates (probably $750 or less), if she sets up a trust, she should also transfer her other assets into the trust to keep everything out of probate. Changing her will to leave the house to you should not cost more than $250-300. If she does nothing, the house passes under the will to your mother.