Eric Feichthaler

Mr. Feichthaler:

We read your column every week, and love the practical tips you give. Unfortunately, we tried to prepare a deed on our own, and are having some issues. We wanted to prepare a deed that provided our son receive our home at our passing without probate. Instead, it appears we transferred actual ownership of our home to our son. We are very concerned about losing homestead protection and tax savings, homeowners insurance and other issues we may not have thought of. What should we do?

— Stacey and John B.

Dear Stacey and John:

The short answer is, seek legal counsel. First, you should be commended for taking the steps needed to provide for a hassle-free transition of property to your son if you were both to pass. As noted in prior columns, the Enhanced Life Estate Deed is a great tool we use to avoid probate and immediate vesting of property in your beneficiaries if you die while owning it. I also note in prior columns that, given the significant financial consequences to errors, hiring a qualified attorney to assist with planning is advisable.

You have noted a few of the issues above, but you also have a potential loss of the Save Our Homes homestead property tax savings. This loss could be substantial, especially if you have lived here since the recession. Also, if you have an existing mortgage, the Lee County Clerk may look for you to pay Documentary Stamps on the transfer, in the amount of seven-tenths of a percent of the outstanding loan value.

One item you will likely need is a deed from your son putting title back in your names. Hopefully you get along with your son well! Again, before proceeding with attempting to reverse the actions taken, I encourage you to seek legal counsel to advise on all potential issues that could arise from the transfer.

Eric P. Feichthaler has lived in Cape Coral for over 33 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Historical Museum, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator.

This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.