How Can Homestead Exemption

If you own a piece of property and plan on selling it, it is a good idea to transfer it to your child as a way to make sure your property remains tax-free and in your family for the foreseeable future. However, there are some drawbacks to this type of transfer, which is why it is important to find out how to transfer your homestead to your children.

The homestead law of the land has a number of exemptions. One of them is the Disabled Person Exemption. This is a federal program that allows qualifying individuals to claim a tax-free income on the value of their homes. In order to qualify for this exemption, you must provide current documentation from the Department of Veterans Affairs that verifies your disability and ownership of the property.

A similar program, the Save Our Homes program, is available in certain municipalities. Its main purpose is to reduce the cost of homeownership, but its other benefits are worth noting as well. For example, this program makes it easier for homeowners to buy new homes by limiting the amount of money they have to pay for the property.

How Can Homestead Exemption Be Transferred to Your Children?

Another homestead benefit is the ability to remove your primary residence from the probate process. If you die, your surviving spouse may be able to take your home as a life estate, meaning that you will receive a one-half interest in the property, which is vested in all of your descendants. Alternatively, you may decide to sell your homestead and move to a different state. You can also use a revocable trust to pass on your homestead, although you will need to consult a lawyer for this task.

Homesteads are protected from foreclosure by a law known as the Homestead exclusion. If you own a mobile home, you may also be entitled to a homestead exemption. To qualify, you must have a Texas personal identification certificate matching the address of the property. As a result, you should be able to receive a real property decal indicating your ownership.

Aside from the Homestead Exemption, you can also be exempt from school taxes on your home. These taxes are based on the assessed value of the property. With the Enhanced Homestead Exemption, you can permanently freeze the amount of money you have to pay for these taxes. Using this program, you can also transfer your exemption to another qualified homestead within the same taxing district.

You can also save on your property tax by using the Save Our Homes Program to lower your assessed value. The only catch is that this program has limits. For example, the average homeowner will not be able to claim the Save Our Homes enticement if they have newly constructed homes, or if the improvements made to their home exceed 3% of the original home’s value.

The most important thing to remember is that homesteads are only eligible for the Save Our Homes program if they meet the other requirements. For example, you must be a homeowner over the age of 65 and live in the house for at least six months out of the year.