Legal Question in Wills and Trusts in Florida

In 1983 my parents bought a home in Florida for cash. In 1986 the deed was transferred into my name for $10.00, signed by both my parents. They continued to live in the home. In 1998 a family trust was created, and I am now the trustee. My mother passed in 2007, and my dad is in advanced stages of Alzheimer's desease. The current economic conditions have dropped the value of the house back to the 80's price. I have paid between $20k and $30k in taxes and insurance over the past 25 years. The trust is set up for my 2 sisters and myself. The house is is not currently in the trust. The trust has well over $100,000 in "cash" in it. How do I (can I) legally segregate those funds? Is it more benificial to keep the house outside the trust or sign it back over?


Asked on 6/26/11, 8:41 am

4 Answers from Attorneys

Latangie Williams Law Office of Latangie Williams, P.A.

I'm not sure that I understand what you mean by segregating the trust funds. As far as the house, depending on what you are trying to accomplish, you can leave it in or out of the trust. For a free consultation, please contact my office at 904-576-2581 or email me at [email protected].

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Answered on 6/26/11, 8:51 am
Sanford M. Martin Sanford M. Martin, P.A.

We assume that your inquiry relates to a revocable or living trust. Based on the described facts, there are no disadvantages to transferring the residence to the trust; in fact, there may be advantages. For further counsel, you should discuss the specific trust and related facts with an experienced attorney to discuss legal options and benefits.

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Answered on 6/26/11, 9:01 am

If the property is in your name, then it is not part of the trust.

I think you need to consult with an attorney to resolve some issues that have been created. It may not be set up the way you think it is, and the way the family wants it to be.

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Answered on 6/26/11, 9:23 am
Michael Sasso M. Daniel Sasso

From your fact situation I am not sure who or what you are trying to protect or whom you are tying to benefit. However, be very careful how the re- transfer of the house will effect the Medicaid prohibition and disqualification of your father from continuing to receive the same - Holding a home in a revocable living trust is a prohibition of Medicaid rights; you had best ask qualified legal counsel who specializes in Elder Law or at least convey it back to a "ladybird" deed so that your parent holds it in their individual name even though the trust could be used to pay the upkeep at that time. The Lady Bird deed could have it pass either into the trust upon parent's death, or directly to the heirs avoiding the trust and probate.

Due to the fact that the home is same value as when originally conveyed there would be no benefit in re conveying to get an income tax break since there would be no available "step up" in tax basis upon an eventual sale. Also for any capital gain tax break to be taken the transfer to the parent would have to be more than 1 years prior to their death. You would not recover the past realty taxes and upkeep you have expended on the same. Only if the home would again qualify as the possessed homestead of your parent would there be any protection from the parent's creditors upon their eventual death, but this certainly would not overide inherent Medicaid dangers set forth above, since those loses would be extensive the longer the parent would remain alive after qualification.

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Answered on 6/27/11, 6:54 am


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