Qualified Personal Residence Trusts
See Robbins v. Wellbaum, 664 So.2d 1(Fla. 3d CDA 1995). However, in order to ensure that the homestead exemption will be preserved during the term of the trust, practitioners should request a written opinion from the local property tax appraiser's office where the real property is located. However, the limitation may no longer apply at the expiration of the term (i.e., if the home is distributed to the children at that time). Thus, practitioners should alert their clients to the potential loss of the limitation prior to their execution of the qualified personal residence trust.
QPRT's are entitled to homestead exemption because they indisputably hold equitable title in the home, which is their permanent residence. Section 196.031, Florida Statutes, allows individuals to claim a home exempt from ad valorem taxation if they hold legal or beneficial title to that home and, in good faith, make it their permanent residence. For homestead exemption purposes only, individuals holding beneficial title includes residents whose stay on the property is limited by jointure or settlement. § 196.041, Fla.Stat. The QPRT is valid under Internal Revenue Code § 2702 and creates a jointure or settlement under the meaning of § 196.041 of the Florida Statutes. As such, your spouse would hold beneficial title to the residence for homestead purposes, and because he/she has, in good faith, made it his/her permanent residence, he/she is entitled to homestead exemption.
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