Navigating the transfer of real estate into a trust requires careful attention to detail to prevent future title issues or unintended tax consequences. This is where an experienced trusts attorney could provide invaluable guidance. We help you understand the specific steps involved, from drafting the correct deed to ensuring compliance with Florida law.
Properly handling real property in Coral Gables trusts not only fulfills your estate planning objectives but also provides you peace of mind knowing your most significant assets are safe.
The process of funding a trust with your Coral Gables landholdings begins with a new deed. In Florida, you will typically use either a quitclaim deed or a warranty deed to transfer the title from your individual name to your name as the trustee. A quitclaim deed is often simpler, but a warranty deed provides stronger guarantees about the title’s history. The choice depends on your specific circumstances and goals.
For instance, if you have a mortgage, transferring ownership may trigger a due-on-sale clause, requiring you to notify your lender. Federal law often provides an exception for transfers to a revocable living trust, but proactive communication with your lender is always a wise strategy.
Another critical consideration is Florida’s homestead exemption, which provides significant creditor protection and property tax benefits. To preserve these advantages, you must transfer your primary residence to a trust correctly. Your trust agreement needs specific language to maintain the property’s homestead status. We structure your trust properly so you and your beneficiaries can continue to benefit from these important protections after transferring your real property into a trust.
It is also essential to coordinate with your title insurance company to update your policy and confirm that coverage continues under the new ownership structure.
Once you place real estate in a trust, the terms of your trust will govern its management. As the trustee, you maintain full control over the property during your lifetime and can sell, refinance, or rent it as you choose. If you own rental properties, the trust agreement should specify how to manage and distribute income. For properties located within a homeowners’ association or condominium association, you must notify the association of the ownership change and ensure compliance with its rules.
When you pass away, the successor trustee you name takes over management of the trust according to your instructions, without court involvement. This process avoids the time and expense of probate. Your successor trustee manages the property for your beneficiaries, whether that means transferring it directly to them, holding it for their benefit, or selling it and distributing the proceeds.
Clear instructions within your trust are essential for a smooth real estate transition and to prevent disputes among beneficiaries. We can help draft precise terms that reflect your wishes for your trust-held real property.
Properly integrating your property into your estate plan is one of the most effective ways to protect your assets and provide for your loved ones. Our estate planning attorney, Ana M. Veliz, works with clients to ensure the smooth and effective transfer of real property in Coral Gables trusts. From drafting the correct deeds to preserving your homestead exemption and coordinating with lenders, every step requires precise attention to detail. Our firm is dedicated to helping you navigate this process with clarity and confidence.
Contact Veliz & Associates, P.A. today to schedule a consultation and learn more about how we can assist you with protecting your real property.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
(305) 250-9917