Beneficiaries Who Inherit Homes Subject to Mortgage May Have Options

The CFPB issued an interpretative rule clarify the Ability to Pay rule which went into effect in January.  Surviving family members who inherit real estate may take over the mortgage or be considered for a workout.

Read the full article....

CFPB Clarifies Rule That Could Cause Heirs To Lose Their Homes

 July 8, 2014 By Ashlee Kieler

http://consumerist.com/2014/07/08/cfpb-clarifies-rule-that-could-cause-heirs-to-lose-their-homes/

Lee County Florida Senior New Property Tax Break

Lee County, Florida Requirements for New Senior Tax Deduction:

1. 65 years of age

2. less than $27,590 in annual income

3. Own home for 25 years

This benefit is in additional to homestead, senior and widow exemptions already available.

NEILSON LAW, PA

Read the following story at www.news-press.com

Commissioners Tuesday passed a tax break for senior residents that could let some escape the property taxes Lee County’s levies altogether, Property Appraiser Ken Wilkinson said.

Homeowners 65 or older can cash in on the exemption provided they earn less than $27,590 a year and have owned the same house for 25 years, according to Wilkinson and state documents.

When combined with previous exemptions, some seniors could skip Lee County government’s tax bill in its entirety — if their home is worth less than $250,000, Wilkinson said.

“They wouldn’t pay any property taxes to the county,” Wilkinson said.

The exemption doesn’t apply to school taxes, Wilkinson said. Other authorities, including cities, will continue to collect taxes on properties in their jurisdictions.

Lawmakers passed the tax break, clearing the way for county commissions to adopt it, a year ago. It went into effect Nov. 6, 2012, according to county documents.

With just two days left until a statewide deadline on filing for a new exemption Thursday, Wilkinson said his office will go through records to identify eligible homeowners.

Those people, he said, will automatically receive the exemption. Wilkinson said he plans to break the good news in letters.

Homeowners have two months to apply for exemptions every year, but some wait until the final days, Wilkinson said.

Lee County government can expect to lose about $500,000 in revenue by offering the exemption, Assistant County Manager Pete Winton said.

Across the state, county governments will lose an estimated $9.1 million in tax revenue during fiscal year 2014-15, according to an analysis by the Legislature.

Avoiding Florida Probate - Do I have to include my spouse's name on my vehicle title to avoid probate in Florida?

No, but joint tenancy will avoid a trip to the Department of Vehicles.  Florida law provides that two motor vehicles held in decedent's name and regularly used by the decedent or immediate family for personal use are considered "exempt assets"... and not subject to general creditors of decedent (excluding liens).

732.402. Exempt property

Currentness

(1) If a decedent was domiciled in this state at the time of death, the surviving spouse, or, if there is no surviving spouse, the children of the decedent shall have the right to a share of the estate of the decedent as provided in this section, to be designated “exempt property.”

(2) Exempt property shall consist of:

(a) Household furniture, furnishings, and appliances in the decedent's usual place of abode up to a net value of $20,000 as of the date of death.

(b) Two motor vehicles as defined in s. 316.003(21), which do not, individually as to either such motor vehicle, have a gross vehicle weight in excess of 15,000 pounds, held in the decedent's name and regularly used by the decedent or members of the decedent's immediate family as their personal motor vehicles.

Veteran Benefits: New VA Healthcare Center Opens in Cape Coral Florida

The new healthcare facility opened in December, 2012 offering our veterans a variety of health services in a state of the art building.

Here is some information from the VA website: www.baypines.va.gov

Lee County VA Healthcare Center, Cape Coral, FL

Features Services Available: Primary Care Mental Healthcare Post Traumatic Stress Disorder Substance Abuse counseling, Intensive Outpatient Program, and Recovery Program General mental health counseling Sexual Trauma Recovery Women’s Healthcare Ambulatory Surgery Audiology Cardiology and EKGs/Echocardiograms Compensation and Pension Examinations in cooperation with the Veterans Benefits Administration Coumadin Clinic Dental Dermatology Eye Care Blind Rehabilitation Outpatient Services (BROS) for the Visually Impaired Low Vision Clinic Compensation Optometry Surgery including laser eye surgery Gastroenterology Home and Community Care (Clinic Based Home Care, Community Homeless Veteran Services and Outreach, Nursing Home, Community Hospice) Imaging X-ray Ultrasound Neurology/EEGs Nuclear Imaging (standard and cardiovascular diagnostics) Nutrition Counseling/Weight Management Orthopedics Pharmacist Consultation and Medication pick up Phlebotomy (blood draws and specimen collection) Podiatry Prosthetics Tobacco Cessation Program Social Work Spinal Cord Injury Urology Referrals to Specialty Care at Bay Pines VA Medical Center Prescriptions: Routine prescriptions processed through the mail or My HealtheVet. Handicapped Accessible: full and easy access for veterans Driving Directions Traveling North on I-75: Take exit 143 for FL-78 W Turn left onto Bayshore Rd Continue onto FL-78 W/Pine Island Rd Turn right onto Corbett Rd Take the 1st right onto Diplomat Pkwy E Destination will be on the right Traveling South on I-75: Take exit 158 toward Cape Coral/N Ft Myers Merge onto Tuckers Grade Blvd Slight left onto Tuckers Grade Turn left onto FL-45 S/U.S. 41 S/Tamiami Trail Continue to follow FL-45 S/U.S. 41 S Turn right onto Diplomat Pkwy E Destination will be on the right Parking Free on premises Facility The Lee County VA Healthcare Center officially opened in December 2012. It replaced the VA Outpatient Clinic previously located in Fort Myers, Fla. VA health care services have been available in Lee County, Fla. since 1979. To learn more about the history of this facility, click here. Special features of Lee County VA Healthcare Center include: Open floor plan with significant natural lighting Energy efficient building management equipment Enhanced communication to include video conferencing and Telehealth Coffee Bistro for patients, family, and staff

Florida Homestead: Did I Abandon My Homestead Protections Allowing Attachment from Creditors?

Homestead Abandonment

Homestead is one of the greatest benefits of being a Florida resident.  Article X, Section 4 of the Florida Constitution affords three benefits of homestead status:

1. Exemption from taxes
2. Protection from forced sale or attachment by creditors
3. Restriction on alienation and devise.

Homestead status is established when a natural person intends to make and actually maintains the real estate as the principal residence.  A homestead is "abandoned" by taking up permanent residence at a distant place.  The issue is what constitutes abandonment in between these two extremes.

Not Abandonment:
One year absence from property to cope with divorce.
Temporary absence and renting the homestead if no other property is owned.
Husband and wife living in a farm house in a different county than homestead during harvest season.

Abandonment:
Owner is absent, allows driver's license to expire, obtains license and registers to vote in another county.

Bottom Line:  contact your attorney before leaving home!

Jennifer Neilson
NEILSON LAW, PA

Florida Probate - can a disinherited child contest a will in Florida?

Yes, but the better question is... could a disgruntled child win a will contest. 

Any interested person may object to the validity of a will, however the burden shifts to the contestant if the will has a self-proving affidavit in accordance with Florida law.
Bottom line: Retain a Florida estate planning attorney to draft your will to assure your wishes are followed and the protect the document from frivolous attacks.

Florida Statutes 733.107. Burden of proof in contests; presumption of undue influence

(1) In all proceedings contesting the validity of a will, the burden shall be upon the proponent of the will to establish prima facie its formal execution and attestation. A self-proving affidavit executed in accordance with s. 732.503 or an oath of an attesting witness executed as required in s. 733.201(2) is admissible and establishes prima facie the formal execution and attestation of the will. Thereafter, the contestant shall have the burden of establishing the grounds on which the probate of the will is opposed or revocation is sought.

(2) The presumption of undue influence implements public policy against abuse of fiduciary or confidential relationships and is therefore a presumption shifting the burden of proof under ss. 90.301-90.304.

 

 Call Neilson Law, P.A. to discuss your estate plan.

Estates: My deceased family member had little assets, is it worth administering the estate?

Maybe.  If the decedent had minimal personal property (cash) and many creditors it may appear fruitless to administer the estate, however if real estate is involved there may be an unattachable pot of gold.

If decedent maintained a homestead in Florida with equity, the equity passes to heirs free and clear of creditor claims (except real estate creditors, i.e. mortgagees, etc...).

If you are an "heir" of decedent your attorney may petition the court to establish homestead of the real estate and if granted, the order will cause title to vest in the "next of kin" free of claims.  (See below to determine if you are an "heir" of decedent.)  See Article X, Section 4(b) of the Florida Constitution

The decedent's homestead is not an asset of the probate estate however it is frequently controlled and preserved by the Personal Representative for the beneficiaries during administration of the estate.  Typically, a creditor publication is required prior to a probate judge granting a Petition to Establish Homestead.

In summary, should you administer the estate?

1. Is the real estate the decedent's homestead?
2. Is there equity in the homestead?

If the answers are "yes" and "yes", then yes!

Call NEILSON LAW, PA regarding a Petition to Establish Homestead.

Who is an "heir"?
Section 731.201(18) of Florida Statutes defines heirs or heirs at law as “those persons ... who are entitled under the statutes of intestate succession to the property of a decedent.” 

Who receives under intestate succession?
(1) To the descendants of the decedent.

(2) If there is no descendant, to the decedent's father and mother equally, or to the survivor of them.

(3) If there is none of the foregoing, to the decedent's brothers and sisters and the descendants of deceased brothers and sisters.

(4) If there is none of the foregoing, the estate shall be divided, one-half of which shall go to the decedent's paternal, and the other half to the decedent's maternal, kindred in the following order:

(a) To the grandfather and grandmother equally, or to the survivor of them.

(b) If there is no grandfather or grandmother, to uncles and aunts and descendants of deceased uncles and aunts of the decedent.

(c) If there is either no paternal kindred or no maternal kindred, the estate shall go to the other kindred who survive, in the order stated above.

F.S. 732.103