Preserve Property Tax Benefits of Primary Residences Placed Into Trust

Make Sure That You Reapply for Your Homestead Exemption and 4% Assessment Ratio if You Place Your Home into Your Revocable Trust

Over the years, we have had situations in which clients did not reapply for his homestead exemption and 4% assessment ratio soon after his real estate attorney prepared his deed transferring his primary residence into his trust. The clients only realized it when they received a tax bill on his home that was nearly 2½ times more than the previous year’s bill.

Whenever we do trust planning and recommend that your house be placed into trust, we write to your real estate attorney and copy you on the letter to remind you that you should apply or reapply for the homestead exemption and 4% assessment ratio, if you otherwise are eligible. We also warn you of the risks of higher taxation, which have apparently become even greater with recent substantial increases in taxes that are being imposed locally and statewide, especially if the home is not a primary residence. In addition to our warning, most real estate attorneys will give you the same advice either orally or in writing.

If you have not done so, please apply or reapply. if you qualify. Otherwise, you will be paying a much higher tax than is necessary.