Legal Question in Real Estate Law in Florida
How to hold title to mother-in laws home
My son�s Mother-in-law and Step-Father-in-Law have just been divorced and sold their home. Because of their large indebtedness my Mother-in-Law received very little for her share. Her ex-husband is a 100% disabled veteran and she is unable to receive any of his disability compensation from the VA. She is sixty-three years old and her only income is a small Social Security check each month. My son, daughter-in-law, his brother-in-law and wife have decided to purchase a vacate home across the street from my son�s home. The homes are located in the state of Florida. The mortgage agreement is held by my Son, his Brother-in-law and both their wives.
My question is: What is the best way to hold title to the house? They would like the Mother-in-law�s name to be on the title so she could qualify for Homestead Exemption and the 3% annual cap on raises in property tax. Because her Annual Adjusted Gross Income is below $22,693 they also wish that she could qualify in two years for the Senior Citizen Additional Homestead Exemption. My e-mail is [email protected] Thanks, John
2 Answers from Attorneys
Re: How to hold title to mother-in laws home
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 beneficiaries would be your son, his brother-in-law and both of their wives.
The second method would be to have the title to the house placed in the name of your son's mother-in-law for life with a remainder to your son and and his wife one-half (1/2) interest and your son's brother-in-law and his wife one-half (1/2) interest. This is far less complicated and much less costly. Your son's mother-in-law will continue to own the property during her life and you then both families will own the property upon her death.
The property will still quailfy as son's mother-in-law's homestead which will qualify her for the homestead exemption and limit the rise in property taxes under the Florida constitution.
Scott R. Jay, Esq. 305-249-8000
Re: How to hold title to mother-in laws home
DISCLAIMER: Not Legal Advice. No Attorney-Client Privilege is created by this communication. Seek advice of local, qualified legal counsel.
I agree with the attorney who posted the original response and would add to that by saying that this second method may be achieved by the parties entering into a QuitClaim Deed and transferring the title in that manner.
Good Luck to you.
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