Legal Question in Real Estate Law in Florida

My parents moved into assisted living facility & sold their house to me in 2005 for 250K. The mortgage was put in their family trust. My father died later that year and my mother moved in the house with me. In Jan of 2010 I stopped making mortgage payments and my mother said no problem. She will give be the property with no further payments, but we aren't sure how to do take the mortgage out of the family trust and what the tax consequences would be. Can she do a quit claim as trustee and then we take care of taxes with CPA? Thank you


Asked on 8/19/11, 3:38 pm

2 Answers from Attorneys
David Slater David P. Slater, Esq.

You will also need too file a satisfaction of mortgage.

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Answered on 8/19/11, 3:42 pm
William W. Fernandez, Sr., J.D. Law Ofc. Wm. W. Fernandez, Sr., J.D., Atty. at Law

Hindsight is best. There would be no tax problem if U inherited the property from UR parents. U would have taken it w/ a stepped-up basis 4 taxes. Now, UR mother faces gift taxes & U have a $250,000 basis 4 tax purposes. Just record the Satisfaction of Mortgage & Cancel & mark the Note "Paid in Full". Have UR mother initial or sign the "Paid in Full" part & date it or just destroy the Note.

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Answered on 8/20/11, 8:08 am


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