Yesterday a client wanted to know whether he would still qualify for the homestead exemption if his home was in a revocable living trust. As part of his overall estate plan, we decided to set up a living trust to protect certain assets from the creditors of his adult children. Once the trust was established, we advised that he deed his homestead into his revocable living trust.
I told the client that a revocable living trust if properly drafted would not negatively impact the homestead protection. The trust we prepared for the client does include the necessary language to ensure that the client retains the homestead protection from creditors and also still benefits from Florida’s homestead tax exemption. Of course, should the client ever move out of the home then he would lose both protections.
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