Understanding the Florida Homestead Exemption

Florida offers one of the most generous homestead exemptions in the country. If you own and occupy your home as your primary residence, you may qualify for:

• A property tax reduction – The exemption reduces the taxable value of your home by up to $50,000.
• The Save Our Homes (SOH) cap – Limits the annual increase in assessed value to 3% or the change in the Consumer Price Index (CPI), whichever is lower.
• Protection from forced sale – Your homestead is generally protected from most creditors.

How a Trust Affects Your Homestead Exemption

When you transfer your home into a revocable living trust, the ownership technically changes from you as an individual to the trust. Because of this, many property appraisers require you to reapply for your homestead exemption to confirm that the home remains your primary residence.

If you do not reapply, your homestead exemption could be removed, resulting in:

• ● A significant increase in property taxes.
• ● Loss of the Save Our Homes (SOH) cap, causing your home's assessed value to reset to full market value.
• ● Potential exposure to creditors that could have been avoided.
•  

Re-Filing Your Homestead Exemption

To ensure you maintain your homestead benefits after placing your home in a trust, you should:

1. Check with your county property appraiser – Each county may have slightly different requirements. Contact your local property appraiser’s office to confirm the process.
2. Submit a new homestead exemption application – Most counties require a new application after transferring property into a trust.
3. Provide a copy of the trust – Some counties require a copy of the trust (or a certificate of trust) to verify that you, as the grantor, still have the right to reside in the home.
4. Meet any deadlines – Many Florida counties require re-filing by March 1st to ensure continued eligibility for the current tax year.

Final Thoughts

If you've placed your home in a trust or are considering doing so, it’s crucial to ensure that your homestead exemption remains intact. The failure to re-file could lead to unintended financial consequences and a higher tax burden. A quick call to your local property appraiser’s office and timely reapplication can save you thousands of dollars in property taxes and maintain the legal protections Florida homeowners enjoy.

If you have questions about your homestead exemption or need help setting up a trust, contact Attorney Dan Blougouras for expert guidance on estate planning in Florida. Call today for a free estate planning consultation with Dan! Ph (321) 735-8885