Author: Benjamin Boyhan
-
What is a revocable living trust?
Before explaining what a revocable living trust is, it is important to define some trust terms: Settlor (aka trustor or grantor) – The creator of the trust.Beneficiary – Someone named in the trust to inherit trust property.Trustee – Manages the trust and ensures that the provisions of the trust are fulfilled. The settlor is usually…
-
Who inherits a Florida homestead property when the owner dies?
If the owner of a Florida homestead dies leaving behind a spouse or minor children, the spouse or minor children automatically inherit the deceased’s homestead property even if there is a will, trust, or other estate planning document indicating otherwise. The following is a detailed list of who inherits homestead property when the owner dies…
-
If you gift your Florida home to a loved one, is there a gift tax?
First of all, I am not an accountant and I strongly recommend speaking with your accountant about tax implications before making a gift of real estate. Most Americans will not need to pay a gift tax when gifting real estate. However, you will probably need to file an IRS Form 709 and a tax may…
-
Can you transfer your homestead benefits to a new residence?
If you sell your Florida homestead and buy a new homestead, you cannot transfer the homestead exemption, but you can transfer the Save Our Homes assessment limitation. Save Our Homes is one of the benefits that comes with homesteading property in Florida. It limits the assessed value of your home to at most 3% per…
-
BEWARE of Florida property taxes and homestead when buying a home
It is not uncommon for a buyer of real estate to be caught off guard by property taxes in the year after the buyer buys their Florida home. The reason is because property taxes are paid at the end of the year in Florida making the property tax bill unknown for most of the year…
-
Can you rent your homestead property and maintain homestead status?
If you homestead your property, but you also rent it out, then you may lose your property’s homestead status on the part of the property you are renting if the property appraiser finds out that part of the homestead is rented. And if you rent the entire homestead property or a substantial portion of the…
-
Can you homestead your Florida duplex or multifamily property?
Homestead offers some good benefits in Florida. The most significant benefits are tax benefits and creditor protections. With regard to tax benefits, up to $50,000 worth of a property’s taxable value can be exempt from property tax calculations (about $700 or so off your annual property tax bill) and the annual increases of ad valorem…
-
Can a real estate agent amend Florida real estate contracts?
There are standard form real estate addenda in Florida that real estate agents can provide to their clients. For instance, there is a form addendum that extends the real estate contract. Real estate agents can provide their clients such form addenda and help their clients fill in the form. However, addenda or an amendment that…
-
An LLC Operating Agreement can avoid probate in Florida
An operating agreement is not required, but it is recommended because it can address important aspects of your limited liability company (“LLC”), such as, the management of the LLC, powers of the managers/members, ownership interest, transfer of ownership interest, how new members can be added, how a new manager can be elected, voting, how profits…
-
Important provisions to review in a mortgage
It is important to understand certain provisions of your mortgage to protect yourself. Obvious provisions to review are the interest rate, term, and payment dates, but there are other provisions that you should pay special attention to: Prepayment penalty – A prepayment penalty means that if you pay off the mortgage early, there will be…