Loune-Djenia Askew, Esq.
Apr 3, 2024
No, you can keep your Florida homestead status when transferring your property into a revocable trust, provided the trust is properly structured. This ensures that you continue to enjoy the protections and benefits that come with homestead designation. However, to ensure everything is done correctly, professional legal guidance is highly recommended.
Understanding Florida Homestead Status
If you are a Florida homeowner, you are likely familiar with the term "homestead." This legal designation provides Floridians with certain protections and benefits, like tax exemptions and asset protection from creditors. But what happens to your homestead status if you decide to transfer your property into a trust?
The Impact of Trusts on Homestead Status
Transferring your property into a trust can be a smart estate planning move. It may help you manage your assets and ensure a smoother transition after your death. The good news is, in Florida, transferring your homestead property into a revocable trust won't jeopardize your homestead status.
Revocable Trusts and Homestead Protection
A revocable trust, often known as a living trust, is a popular choice for estate planning. This is because it offers flexibility – you can alter or revoke it at any time during your lifetime. Florida law recognizes that when you transfer your homestead property into a revocable trust, you retain the right to use and occupy the home, which is essential for maintaining homestead protection.
Navigating the Transfer
To keep your homestead protection intact, the trust document must specifically provide that you retain a life estate or the equivalent right of use and occupancy of the property. It is crucial that this is clearly stated to avoid any potential issues that could arise, potentially affecting your homestead status.
Consulting With an Attorney
While the process might sound straightforward, it is all about the details. It is wise to consult with an attorney who specializes in Florida estate planning to ensure that your transfer to a trust is executed correctly, preserving your homestead benefits.
For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.
Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.
