A couple of years ago my husband and I were able to purchase a 2nd home. My mom and grandmother, who had been renters for over 10 years, live in it. We didn’t know about the cap ”lift” on the property taxes and how if it is not a homestead the taxes are outrageous. We agreed to subsidize the mortgage so that my mother and grandmother had no increase in their monthly expenses. Now for this year we are paying $800 more a month. We can’t continue to pay that amount and we are faced with the tough decision to sell the house this would mean my mom would be renting once again and it would bring us back to square one.
Can we file a Quit claim deed to my mom so she can claim it as her homestead and we can lower the taxes for this coming year 2007? or would it be better to add her to the title?
Quit Claim A couple of years ago my husband and I were able to purchase a 2nd…
Re: Quit Claim
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There are several different methods to accomplish your goals if I understand them correctly. A Quit Claim Deed would transfer the title to mom and grandmother and then they could file for homestead exemption which would result in a tax savings of about $600 – $750 the first year and cap increases in the future of the property taxable value to 3% more than the previous year.
By doing so, there are other issues to consider including what happens to the property in the event something happens to one or the other of them. Many people wish to plan for this eventuality and I would suggest that you take the time to consult with a qualified attorney in order to do so.
Scott R. Jay, Esq.
Scott R. Jay
Law Offices of Scott R. Jay
1575 Northeast 205th Street
Miami, FL 33179-2133
Re: Quit Claim
The reply received from Mr. Jay is accuraqte. However you should also consider conveying a life estate to your mother with the remainder to your self or to whomever. A life estate interest allows for homestead tax privileges. Still, you should counsel with counsel before doing it.
Alexander M. Rosenfeld
Rosenfeld & Stein, P.A.
11900 Biscayne Boulevard
Miami, FL 33181