Owning your home in the name of your living trust will not increase your real estate taxes.

Attorney Tom Olen: Jim, you're on WDBO. Go ahead.

Jim: Hi, Tom. Thanks for taking my call.

Tom: Sure.

Jim: We've just set up a revocable living trust. We have owned our homestead for 25 years, and our property taxes currently show a relatively low assessed value. My question is-- Would transferring our house into the trust be an opportunity for the Seminole County property appraiser to step up the assessed value of our home and cause us to pay increased property taxes?

Tom: In my opinion, the answer is no, Jim, but let me tell you how we do it for your home, Jim. That is, we do not put your home into the name of the trust. We use a Ladybird deed. That Ladybird deed would state that as long as you or your wife are alive, it is your home to do with as you please. It remains in your individual names. Only once you have both passed away, will your home automatically go to your trust.

No headaches, no hassles, no probate. I feel much more confident in telling you that you want to avoid this real estate tax issue. You should be using a Ladybird deed, not just flat-out transferring the title to your home into the name of your trust.

Attorney Christine Merrill: Probably, Jim, the attorney you're working with is probably doing it the way we're doing it.

Tom: You still with us, Jim?

Jim: Yes, I am. All right. Thank you for your answer.

Tom: You're very welcome. Christie, I have seen people put their homes into the name of their trust and it takes a little bit more explaining to the Property Appraiser's Webs Office, but yes, they will not bump up your real estate taxes, in my opinion.

Christie: Well, it depends, and I always tell the client, of course, to check with, because it's by county. Let's assume what you said is standard procedure for most, I'm sure that Jim's attorney is doing it the way that we do it, because remember that, also, the other very important thing about the way we do it, property taxes are important, but number two, they lose their constitutional homestead right, from creditors, if it goes into a trust.

Tom: That's an issue too. That's another reason not to just flood out, put it into the name of the trust.

Christie: Exactly. We keep, it again, the way we do our deed. When we set up trust for clients all the time, we structure the deed legally, in the appropriate way, to ensure that those clients will make sure that they keep their homestead protection. What do we mean? A homestead, obviously, taxes are one thing, but there's a Florida constitutional homestead protection that says as long as your home is in your individual names, you are protected from creditors other than the IRS and mortgage.

You are protected from other creditors here in the state of Florida. Again, another reason why we do it the way we do it.

Tom: Yes. Agreed. Much safer way. Safer, simpler, better.

Christie: Absolutely.

[00:03:25] [END OF AUDIO]