Owner’s wishes can be met by creating a trust to hold property for partner, family
Dear Mr. Feichthaler:
I share a home in Cape Coral with my partner, but we are not married. The home is in my name only. I want my partner to be able to live in the property for life, but I want my children to have the property once my partner dies. What is the best way to do this?
-Kelly E.
Dear Kelly:
Your question comes up often from my clients. There are many factors that could influence the advice on meeting your wishes, such as your homestead protections, save our homes savings, existing mortgages and other matters.
Generally speaking, the method that will provide you the most confidence in having your wishes met is creating a trust to hold the property. When you deed the property to the trust, you will retain all homestead protections and savings. The trust can dictate what occurs should you pass away.
In your case, I would anticipate that your partner will be given the right to live at the property for life, with specifics in the trust regarding what your partner’s responsibilities are. Typically, your partner would be responsible taxes, insurance and otherwise maintaining the property.
If your partner is granted a true life estate in the property through the trust, he or she could claim homestead status in their name. When your partner passes, whomever you name in the trust would be entitled to the property, or the value of it, depending on the directions you give in the trust.
Planning in a way that avoids increased property tax, income tax or documentary stamp tax is vital. I would recommend you seek legal counsel to review your specific situation, so a tailored plan can be devised to ensure the results you want occur.
Eric P. Feichthaler has lived in Cape Coral for over 35 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 Museum of History, 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. He can be reached at eric@capecoralattorney.com, or 239-542-4733.
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.