Will Property Taxes Reassess When You Place a Home in a Trust?

Estate planning is a crucial process that ensures your assets are distributed according to your wishes after you pass away. In Florida, where estate planning laws can have unique stipulations, it's imperative to understand how your decisions can impact your property taxes and overall estate plan. One common question that arises in the context of estate planning is the impact of transferring property into a trust, particularly concerning property taxes. 

The Impact of Transferring Property into a Trust on Property Taxes

When considering transferring property to your heirs, such as a house to a child, it's natural to worry about potential increases in property taxes. Typically, a change in ownership can trigger a reassessment of the property's value, leading to increased property taxes. This is often the case when one individual buys a house from another or even when an investment property is transferred to an LLC, despite the owners remaining the same.

However, the scenario changes significantly when considering placing your property into a revocable trust for estate planning purposes. The key here is understanding that a revocable trust does not constitute a change in ownership in the eyes of the law, especially in Florida. 

Why a Revocable Trust?

A revocable trust is a popular estate planning tool because it allows for the seamless transfer of assets after the grantor's death without the need for probate. In Florida, placing your property into a revocable trust ensures that the property is not reassessed for tax purposes, provided the transfer is executed correctly. This means that your property taxes should not increase solely because you've transferred your home into a trust for your child or any other beneficiary.

The Importance of Correct Language and Legal Guidance

To ensure that your property's transfer into a trust does not affect your property taxes, specific legal language must be used in the deed and the trust itself. This language is crucial in maintaining the homestead exemption and avoiding reassessment. In certain counties, like Pinellas County, Florida, the County Appraiser's office even offers guidance on the specific wording required to retain the homestead exemption when transferring property into a trust.

Additionally, there's the option of utilizing a Lady Bird deed in conjunction with a trust. This approach allows the property to remain in the owner's name during their lifetime and automatically transfer to the trust upon their death, further simplifying the process.

The Role of an Estate Planning Attorney

Given the complexities and the specific requirements of Florida law regarding estate planning and property taxes, it's essential to consult with a knowledgeable Florida Estate Planning Attorney. An experienced attorney can guide you through the process, ensuring that all legal requirements are met and that your estate plan aligns with your wishes without unforeseen tax implications.

Why Choose atCause Law Office?

atCause Law Office focuses on Florida estate planning, including the intricacies of transferring properties into trusts. Our team of dedicated Estate Planning lawyers understands the unique needs of Florida residents and is committed to providing personalized and effective estate planning solutions.

Whether you have questions about revocable trusts, Lady Bird deeds, or any other aspect of estate planning, elder law, asset protection, or Medicaid planning, our experts are here to help. We pride ourselves on our ability to navigate the complexities of Florida estate planning law and ensure that your estate plan is both effective and efficient.

Ready to Secure Your Legacy?

If you're in Florida and considering estate planning or have questions about transferring property into a trust, don't hesitate to reach out to atCause Law Office. Our team is ready to provide you with the expertise and support you need to make informed decisions about your estate plan. Contact us today at 727-477-2255 to schedule a consultation and take the first step towards securing your legacy.

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We strongly recommend you consult an attorney for specific legal advice tailored to your circumstances.