When property is placed into a Trust, Florida Statute 169.041 requires certain language to be on the deed or either in the Trust Agreement.

If the language is not included in the deed we require a copy of the Trust pages below.

1. The page(s) listing the name of the Trust.
2. The page(s) that contains the required language, showing who has beneficial interest as it complies with FS 196.031 in the real property.
3. The page(s) with all signatures and the notary stamp.

We welcome you to make an appointment with our office to bring in a complete copy of your trust to assist with finding the appropriate language within your trust.

Section 196.041, Florida Statute

A person who otherwise qualifies by the required residency for homestead tax exemption provided in s. 196.031 shall be entitled to such exemption where the person’s POSSESSORY RIGHT in such real property is based upon an instrument granting to him or her a BENEFICIAL INTEREST FOR LIFE, such interest being hereby declared to be EQUITABLE TITLE FOR REAL ESTATE, as that term is employed in s. 6, Art VII of the State Constitution; and such person shall be entitled to the homestead exemption irrespective of whether such interest was created prior or subsequent to the effective date of the act.

Adding names to the ownership of your home normally does not change your Homestead Exemption, BUT you may lose all or part of the protection your property receives from the Save Our Homes assessment limitation or “cap”. The Save Our Homes cap keeps the assessed value (not the taxes) of your home from increasing more than 3% per year as long as you maintain your Homestead Exemption. A loss of protection from the Save Our Homes cap will increase the amount of property taxes you pay.

Maybe, depending on how you own the property (the “tenancy”), and if the new owner files for Homestead Exemption on your property. “Tenancy” is the term used to describe the way the property is owned, the relationship between owners, and what happens to the property when an owner dies. The most common forms of tenancy are: Tenancy by the Entireties, Joint Tenants with Rights of Survivorship, and Tenants in Common. If two or more people own property with Homestead Exemption, the type of tenancy that appears on the deed can have an effect on the Save Our Homes provision, and ultimately the amount of taxes that are owned.

If the new owner is your spouse, or someone who is legally or naturally dependent on you, they must apply for Homestead Exemption. Your current Save Our Homes cap will not be adjusted.

If the new owner is a Joint Tenant with Right of Survivorship, and he or she DOES NOT apply for Homestead Exemption, your Save Our Homes cap WILL NOT be adjusted.

If the new owner is a Joint Tenant with Rights of Survivorship and DOES apply for Homestead Exemption, your Save Our Homes cap WILL be adjusted to market value and start anew the following year. In future years, the Save Our Homes cap will protect 100% of the property.

If the new owner is Tenants in Common and DOES NOT apply for Homestead Exemption, your Save Our Homes cap WILL BE adjusted to protect only your proportionate or “percent” interest in the property. The “percent” interest of any owner who does not have Homestead Exemption will be assessed at market value for the first year and then a Non-Homestead 10% cap will be applied each year after.

One Important Note! If the new owner is living with you and intends to make the property their permanent residence, it may make more sense to apply for Homestead Exemption now rather than waiting until a later date. Your Homestead Exemption and Save Our Homes cap protects only you, and not the new owner. In the future if you no longer reside in the property, the new owner will have to apply at that time, and the property value and taxes may be much higher than they are now.

Probably not. In general, a person cannot “inherit” another’s Homestead Exemption or Save Our Homes cap, even if they inherit the property. When property changes ownership after the owner death of the Homesteaded owner, the decedent’s exemptions and cap is removed at the end of the year. The new owner would need to file for their own Homestead Exemption once they have ownership of the property.

There are two exceptions which allow someone to “inherit” an existing Save Our Homes cap: A surviving spouse may retain the existing Save Our Homes cap – even if the survivor was not previously on title -so long as the surviving spouse subsequently files for Homestead Exemption; The existing Save Our Homes cap may be retained if the person inheriting the property – or being granted a Life Estate or beneficial right under a Trust – was naturally or legally dependent of the decedent AND was permanently residing on the property at the time of the decedent’s death. (see Section 193.155 (3), Florida Statutes) so long as the naturally or legal dependent subsequently files for Homestead Exemption.

In all other instances, the person inheriting the property must file for a new Homestead Exemption.

No. If the wording of your current deed has consequences that you did not intend, you may want to consider a corrective deed. Please consult a legal professional, like an attorney, title company, or other real estate professional to help you prepare your corrective deed.

The Property Appraiser’s Office cannot advise you, since there are many serious considerations that go beyond how Homestead Exemption is calculated, including income and estate tax consequences. We recommend that you never attempt to change your deed without the help of a legal professional.

Absolutely! You, your attorney or estate planning professional are encouraged to call our Public Service Department with any questions you may have. We can be reached at 772.462.1000.

The Property Appraiser’s Office cannot legally advise you, since there are many serious considerations that go beyond how Homestead Exemption is calculated, including income and estate tax consequences. We recommend that you never attempt to change your deed without the help of a legal professional.

This information is provided only to help you understand Homestead Exemption and does not constitute legal advice.