Should You Transfer Your Homestead Into A Living Trust?
Many Floridians choose to set up a Living Trust as part of their estate plans. There are numerous benefits of having a Living Trust. One of the many benefits is that it helps avoid the lengthy and costly probate process.
A Living Trust can be executed when the Grantor (the person who creates the Trust) transfers specific assets into the Trust. If you are considering setting up a Living Trust, you may wonder, “Should I transfer my homestead into my Living Trust?” This article will explain whether putting your protected homestead real property into your Trust.
What Are the Homestead Exemption Laws in Florida?
In Florida, there are generally three protections extended to your homestead property. First, your homestead property generally is creditor protected in Florida. Florida law does not impose any limits on the value so a creditor cannot force a sale of your homestead property if a judgment is entered against you. Second, you receive certain property tax breaks on your Florida homestead property. Third, there are inheritance restrictions on your Florida homestead property, meaning you are restricted on who you can leave your homestead property to in the state of Florida. If you are married and/or have minor children, its important you understand the restrictions.
Benefits of a Living Trust in Florida
An increasing number of Floridians set up Living Trusts as part of their estate plans. When created and executed properly, a Living Trust may allow the Grantor greater control over the distribution of assets compared to what can be done through a Last Will and Testament. One of the most significant benefits of creating a Living Trust is that it allows the Grantor’s assets to pass to his or her named beneficiaries outside of probate. However, what about homestead property?
Transferring a Homestead into a Living Trust
Should you transfer your homestead property to your Trust? It depends! Generally speaking, if you’re a single individual with no minor children, then it is usually a good idea for your Trust to hold title to your homestead property. However, if you’re married and/or have minor children, it is best to consult with an attorney about your specific situation. Schedule a case review with our estate planning attorneys at Legacy Protection Lawyers, LLP, to determine whether or not you should transfer your homestead into a Living Trust. Call 727-471-5868 to get a consultation.