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Florida Property Tax Transfers: What to Know

Updated: Jun 16

The Impact of Property Transfers on Taxes

One common question in estate planning is whether property taxes are reassessed when property is transferred to a beneficiary. The short answer is yes. When a property transfers out of your name or out of the name of a trust into your beneficiary's name, it undergoes reassessment to determine property taxes.


The Florida Property Landscape

For those residing in Florida, where property values have substantially increased over the years, this reassessment can lead to significant hikes in property taxes. What was once a modest investment in real estate could now translate into a hefty tax burden for beneficiaries.


Addressing Concerns in Estate Planning

Many clients express concerns about passing down a property to their children or beneficiaries through a trust or Ladybird Deed. While the beneficiaries inherit the property free and clear, they may struggle to pay the increased property taxes.


Exploring Options for Mitigation

Clients often inquire about ways to pass on their homestead exemption or property taxes to their children. Unfortunately, this isn't feasible. However, inheriting property through a trust or Ladybird Deed offers a step-up in basis for capital gains tax purposes, potentially reducing tax liabilities upon sale.


Considering Alternative Strategies

In certain scenarios, adding beneficiaries to the property title as joint tenants with rights of survivorship can be a workaround. This approach, while not applicable in all cases, may help mitigate property tax increases for beneficiaries residing in the home.


Seeking Professional Guidance

Navigating property transfers and tax implications in estate planning requires careful consideration of individual circumstances. Consulting an experienced estate planning attorney is crucial to explore the best strategies tailored to your specific needs and goals.


Contact atCause Law Office for Expert Assistance

At atCause Law Office, we focus on estate planning, asset protection, and elder law matters tailored to clients' unique requirements. If you have questions or need guidance on property transfers, tax implications, or any aspect of estate planning in Florida, don't hesitate to reach out.


Remember, proactive planning today ensures a secure future for tomorrow. Let us help you navigate the complexities of estate planning with confidence and peace of mind!


For expert assistance, contact our office at 727-477-2255. Our dedicated team is here to provide comprehensive solutions to safeguard your assets and secure your legacy.

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