A Mortgage Trust Letter can help simplify the process and get things moving. Whether you're transferring your family home or your investment property, you don't want the transfer to get tangled up in red tape. ![]() If you exceed the limit, the gift will use up some of your lifetime gift tax exclusion.įurthermore, you need to consider what would happen to your rights to this property in the event you and your wife were to get a divorce someplace down the road - if you've gifted a share of the property to her, would she have a right to keep it if you get divorced? I don't know how that would work in Florida, but she'd get to keep the gift if you & the property were in California (unless you have a pre-nuptial agreement or a post-nuptial agreement stating that you get it all back in the event of a divorce).Ĭheck this out with a knowledgeable Florida lawyer.Ĭircular 230 Disclosure: Pursuant to IRS Regulations, we must inform you that any federal tax information, advice or recommendations contained in this communication a) is not intended and cannot be used or relied upon to avoid IRS imposed penalties or to promote, market or advise any other person(s) of such information, and, b) this communication is intended only for the taxpayer(s) to whom it is directed and may not be used to promote, market or recommend to another party any transaction or matter addressed herein.If you're getting ready to transfer real estate to your living trust, a Mortgage Trust Letter can help you speed things up by providing notice, or seeking consent, from your lender. HOWEVER, if the recipient spouse (the "giftee", to make up a new word - or the "donee" to use the acceptable legalese) is not a US citizen, there is a limit on the value of property that can be given to that spouse in any one year. In general, transfers from one spouse to another made during marriage are not subject to gift tax. One thing he didn't mention, though, is that the answer could be a bit different if your wife is not a US citizen. Grevengoed is a member of the Florida Bar, I assume what he's told you is accurate. There are a number of things you can do wrong. Seek the assistance of a qualified lawyer to assist you in the transaction. It will be more if additional pages or if there are multiple names. The charge is currently $10.70 for a one page deed. You will have to pay a small recording fee and minimal document stamps. However, your trust needs to have language that preserves homestead rights or you could lose your homestead exemption. The transfer is not taxable in and of itself nor subject to transfer taxes. For example, if the property is your homestead, a surviving spouse has a life estate (the right to live in the property for her remaining lifetime) in the property even if the trust attempts to conveys it to others. It is helpful to convey using language that gives the trustee powers so examination of the trust document for those powers is unnecessary later.įlorida has a strong Homestead law so be advised that if the property is your primary residence, the trust will not overcome rights that a spouse and minor children have in the property. It is important to transfer the property to the trustee and to fully identify the trust in the deed. You may transfer real property to a trust. I recommend you speak to a qualifed estate planning attorney to review your situation. If you have a mortgage on the property, there likely will be a doc stamp tax consequence on your transfer. ![]() In your case, it is clear that you owned property before you were married and most likely the property is owned only by you. ![]() This is one of the most overlooked areas and it is critical that you let your attorney know whether there is a mortgage on the property. While there is an administrative exemption in the Florida administrative code for transfers into a revocable trust, a doc stamp could still be due depending on how the property is titled and whether there is an encumbrance on that property. ![]() For example, one issue that was somewhat raised is that Documentary Stamp taxes are a tax in Florida that have to be paid on deeds that are recorded. All great points and a clear moral to the story is that legal work is complicated involving many issues that an experienced and qualified lawyer should be advising you on.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |