Page 6 - Martin Downs Bulletin - January '20

Page 6, Martin Downs

estate planning

Florida Homestead Tax estate taxes, collecting one-twelfth of the annual taxes automatically to the children upon death. Seems innocent

Savings Are Wonderful, Rules as of closing to the buyer’s monthly mortgage payments. enough but this small change if not done correctly can
cause loss or reduction of homestead exemption and Save
This escrow is so the mortgage company has the funds to
Can Be Tricky pay next year’s real estate taxes. If the buyer’s taxes for Our Homes credit.
the year after closing are more than the previous year’s Putting your homestead into a trust can be a good estate
By Carrie Lavargna taxes, the mortgage company’s escrowed funds may be planning technique; however, the property owner may
Florida homestead insufficient to pay the buyer’s higher taxes. have to reapply for the homestead exemption so that the
exemption laws save The mortgage company will pay the taxes but then property appraiser can review the trust to make sure the
homeowners a lot of the buyer’s tax escrow will be increased to reimburse special language preserving the homestead exemption is
money in property taxes. the mortgage company for the shortfall in taxes from included in the trust.
Homeowners must apply the previous year plus an amount to cover the following Remember the recording of any deed can affect your
for homestead and other year’s taxes. homestead exemption.
exemptions by Feb. 28 This can cause a really big financial burden on the This column is an overview of the subject matter and
of the year following buyer in year two and three after closing. That is why is not intended as legal advice. Carrie Lavargna is an
purchase. In the first year it is important to understand the real estate taxes before attorney practicing law in Stuart at Lavargna Law, PLLC
of homestead exemption, you buy. and is board certified in real estate law by The Florida
the homeowner saves an Once a homeowner has homestead exemption, any Bar and is designated an accredited estate planner
average of $400 to $600 in change in title can affect homestead status. Seniors (AEP) by the National Association of Estate Planners
property taxes. like to put children on title to their house so it passes and Councils.
It gets better because the “Save Our Homes” law
provides that the assessed value of the homestead cannot
increase annually by more than 3 percent or the Consumer Treasure Coast Food Bank’s Fall Harvest Dinner from roster of direct service programs that not only solve
Price Index (CPI). Each year the Save Our Homes credit page 1 the immediate problem of hunger, but help individuals
accumulates and over time and as property values increase and families gain long-term food security, better health
homeowners save thousands in real estate taxes. About Treasure Coast Food Bank outcomes, and self-sufficiency. Treasure Coast Food
When a Florida homeowner moves to another home in Treasure Coast Food Bank is the only food bank and Bank is a member of Feeding America, the nationwide
the state they can take their Save Our Homes accumulated largest hunger relief organization on Florida’s Treasure network of 200 food banks that leads the fight against
credit with them to the new house. It’s not automatic and Coast, providing the community each year with millions hunger in the United States. For more information on
the homeowner must apply for homestead and portability of meals valued at more than $50 million through Treasure Coast Food Bank, call (772) 489-3034, log on
of the Save Our Homes credit with the property appraiser robust programs and in partnership with 400 charitable to stophunger.org, visit our Facebook page at facebook.
in the county where the new house is located. The organizations in Indian River, St. Lucie, Martin, and com/tcfoodbank, or follow us on Twitter at twitter.com/
homeowner has only two years to claim portability of Okeechobee counties. In addition to emergency food tcfoodbank.
their Save Our Homes credit. distribution, Treasure Coast Food Bank operates a full Photos by Jaqueline Kenny
Buyers need to be savvy about real estate taxes and
not assume property taxes will be the same for the year
after closing. If the present homeowner has homestead
exemption his or her taxes are assessed based upon the fair
market value reduced by the Save Our Homes credit, the
homestead exemption and any other exemptions claimed,
such as VA disability or low income senior.
Recording any deed requires the property appraiser to
re-examine the property taxes.
Once the deed to the buyer is recorded, the property
appraiser will be reassessed the property as of the
following Jan. 1 at current fair market value, and seller’s
Save Our Homes credit, homestead exemption and other
credits are removed.
Buyer’s taxes can skyrocket the year after closing. Joanne Humphries and Jessica Marcia Littlejohn and Karl
Buyer’s mortgage company generally escrows for real Barklie Eliot and Chris Albrecht Stockman Zimmermann

When it comes to your to-do
When it comes to
list, put your future fi rst.
your to-do list, put

your future fi rst. TCFB CEO Judith Cruz, Paul Genke, and Lila Carol Lynn Peterson and Tom
To fi nd out how to get your fi nancial
goals on track, contact your Edward Blakeslee Glover Virginia and Paul Friesen
Jones fi nancial advisor today.
To fi nd out how to get your

fi nancial goals on track,
contact your Edward Jones
fi nancial advisor today. When it comes to your to-do

list, put your future first.

To find out how to get your financial
Bryce R Buchanan goals on track, contact your Edward
www.edwardjones.com
Financial Advisor Jones financial advisor today.
Member SIPC
2900 S W Town Center Way
Palm City, FL 34990
FAP-1966D-A Jamie L Chapogas, Bryce Buchanan
772-463-7189
Financial Advisor
AAMS®
2900 SW Town Center Way
www.edwardjones.com
Financial Advisor Palm City, FL 34990
772-463-7189
Member SIPC
. 2900 S W Town Center Way
FAP-1966C-A Palm City, FL 34990
772-463-7189
www.edwardjones.com
Member SIPC