Can the IRS attach a lien to an interest created by a lady bird deed?
The IRS probably cannot attach a lien to the remainder interest created by a lady bird deed, but it can attach a lien to the life estate interest. However, for title insurance purposes, you should act as though the IRS can put a lien on any interest created by a lady bird deed. Lady Birds […]
Does a trust have to file a tax return if there is no income?
No, a trust is not generally required to file a tax return if there is no income. However, even a small amount of taxable income may result in the need to file a tax return. Not all trusts file tax returns. For example, a revocable trust does not file a tax return, regardless of the […]
Can a trustee also be a trust beneficiary?
Yes, a trustee can also be a beneficiary of that trust. In fact, this is done commonly, especially with spouses. You might think that making the trustee a trust beneficiary would eliminate any asset protection benefits of the trust. However, according to section 736.0504 of the Florida Statutes, this is not entirely the case. As […]
Inter Vivos Trusts vs Testamentary Trusts
Trusts are frequently used in estate planning. A trust can help you avoid probate, provide asset protection for your beneficiaries, and let you retain control over assets after you pass away. Simply put, trusts can do a lot. Because trusts are so versatile, not all trusts are the same. Different types of trusts have different […]
7 Ways an Irrevocable Trust be Dissolved in Florida
All trusts can be broadly broken down into two big categories: revocable and irrevocable. A revocable trust is a trust that can be taken back. The settlor (the person who makes the trust) of a revocable trust can decide at any point to either amend or undo the entire trust. A revocable trust can also […]
Tax Implications of the Florida Lady Bird Deed
I love the Florida Lady Bird Deed (otherwise known as an “Enhanced Life Estate Deed” or a “Lady Bird Trust”). It is an incredible estate planning tool, and when used properly it can provide a number of benefits to my clients. But what are the tax implications of using the deed? Will using the lady bird […]
Can you put a house with a mortgage in an LLC?
Yes, you can put a house with a mortgage in an LLC, but you should take steps to ensure that this action will not trigger the “due on sale” clause in your mortgage. Why would I want to move a house into an LLC? LLCs provide an asset protection, often making them the ideal owners […]
What is the Florida Documentary Stamp Tax?
The Florida documentary stamp tax is an excise tax on certain documents, including real estate deeds, easement transfers, lease assignments, certificates of title, and any other written transfer of a Florida real estate interest. An “excise tax” can be understood as a tax that only applies to certain transactions. For example, a tax on cigarettes […]
Can you put a house with a mortgage in a trust?
In Florida, you can put a house with a mortgage into a revocable living trust. However, if you do so, you may need to pay documentary stamp taxes based on the amount of the mortgage. You also may need to consider whether your lender will enforce a “due on sale” clause against you. Why move […]
What is the difference between a will and an estate?
A will is an estate planning document that generally determines who gets your probate assets after you pass away. An estate is all of your property subject to a probate after you pass away. Thus, a will is a document that determines what happens to your estate. What is a will? A last will and […]