Riddell Law GroupFindLaw IM Template2024-03-11T21:45:10Zhttps://www.rlglawfirm.com/feed/atom/WordPress/wp-content/uploads/sites/1102838/2018/10/cropped-og-image-2-32x32.jpgOn Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=503092024-03-11T21:45:10Z2024-03-11T21:45:10ZAvoid probate
Putting your home in a trust allows your property to avoid the probate process. Probate is a court procedure that determines the validity of your will and facilitates the distribution of your assets. This process can be lengthy and expensive, and possibly even subject to challenges in court. Circumventing probate allows for a smoother and more private transfer of ownership to your beneficiaries.
Maintain privacy
Unlike wills, which become public records during probate, trusts remain private. This confidentiality may prevent family disputes or challenges to your wishes, keeping your affairs out of the public eye. Maintaining privacy is especially beneficial for those who value discretion regarding their assets and beneficiaries.
Guard assets against creditors
Creating an irrevocable trust can potentially shield your assets, including your home, from creditors. This type of trust transfers ownership of your assets to the trust, making them less accessible to creditors or nursing homes seeking reimbursement for long-term care costs. An irrevocable trust can provide asset protection during your lifetime.
Plan for Medicaid
Placing your home in an irrevocable trust also may help you qualify for Medicaid benefits by reducing your taxable estate. Medicaid has strict income and asset limits. Transferring your home to an irrevocable trust can decrease your countable assets, potentially making you eligible for Medicaid coverage for long-term care expenses.
Trusts offer flexibility and control over the distribution of your assets, including your home. Still, placing your home in a trust should align with your specific goals and circumstances.]]>On Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=503072024-02-07T22:21:48Z2024-02-07T22:21:48ZNotice of default
Foreclosure starts when the homeowner falls behind on mortgage payments. The lender may issue a Notice of Default. letting the homeowner know that they are in breach of the mortgage agreement. There is still the chance to become current on the payments and prevent further legal action.
The lawsuit
After the initial notice, the lender may file a complaint to start the foreclosure lawsuit. During this stage, the homeowner has an opportunity to respond to the lawsuit and present any relevant defenses.
The court will consider any response from the homeowner. If there is no response, the court may issue a default judgment. This formalizes the foreclosure and passes ownership back to the mortgage holder. It also outlines the amount the homeowner owes and grants the lender the right to sell the property in order to recover the outstanding debt.
Redemption period
Homeowners still have a chance to reclaim their property during the redemption period. This timeframe allows the homeowner to satisfy the outstanding debt and reclaim ownership of the property.
Property sale
The final step in foreclosure involves selling the property at the foreclosure auction to the highest bidder. Following the auction, the new owner takes possession of the property.
The foreclosure process in Florida involves several options for homeowners to regain ownership of their property. Knowing the options can help homeowners to make informed decisions and explore potential solutions before reaching the point of eviction.]]>On Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=503052024-01-12T16:14:05Z2024-01-12T16:14:05ZSecuring property ownership
In November 2023, individuals and businesses purchased 590,000 homes, according to the U.S. Census. However, when they purchased their properties, these buyers expected to gain clear and unencumbered ownership rights. However, without real estate title insurance, new buyers can experience unforeseen issues, threatening the validity of these rights. Title insurance defends against any hidden defects or claims that could jeopardize property ownership.
Identifying potential risks
The title insurance process involves a meticulous examination of public records. It seeks to uncover any potential threats to a property's title. This thorough investigation helps identify issues such as undisclosed liens. It can also find errors in public records or unresolved legal disputes.
Protection against fraud
Title insurance plays an important role in protecting against fraudulent activities, such as identity theft and fraudulent property transfers. Title insurance safeguards the rightful owner's interests, preventing unauthorized individuals from manipulating property records.
Mitigating future liabilities
Real estate transactions involve a significant financial commitment, and any oversight in the title search process can lead to costly consequences down the line. Title insurance covers legal fees and potential losses in the event of a title dispute.
Lender requirements
Mortgage lenders often require title insurance as a condition for the loan. This requirement protects the lender's investment in the property. Title insurance creates a secure foundation for the entire real estate transaction.
By addressing these concerns upfront, title insurance provides peace of mind for both buyers and lenders.]]>On Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=503032023-12-13T21:08:17Z2023-12-13T21:08:17ZLeveraging the gift tax exclusion
One effective strategy is taking advantage of the gift tax exclusion. Rather than waiting until after you are gone, consider gifting assets to your heirs during your lifetime. The IRS allows you to give a certain amount each year to each individual without incurring gift taxes. For 2024, the IRS raised the annual exclusion for gifts to $18,000. By doing this strategically, you can reduce the overall value of your estate subject to taxation.
Establishing trusts for tax efficiency
Trusts can be powerful tools in estate planning. By placing assets into various types of trusts, you can exert control over their distribution and potentially reduce the tax liability. For instance, a bypass trust can ensure the utilization of both spouses' exemptions, maximizing the amount that can pass tax-free to heirs.
Optimizing the step-up in basis
Another consideration is the step-up in basis. When inheriting property, its value adjusts to the current market value, eliminating any capital gains taxes owed if you sold the property. Careful planning can help ensure that your heirs benefit from this step-up, preserving more of the property's value.
Estate planning is not a one-and-done task. Tax laws can change, and your financial situation may evolve. Regularly reviewing and updating your estate plan can help ensure it remains aligned with your goals and takes advantage of any new opportunities to minimize taxes.]]>On Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=502922023-11-10T20:04:14Z2023-11-10T20:04:14ZEconomic uncertainty
One significant factor contributing to the rise in foreclosures is economic uncertainty. Many families grapple with financial instability due to factors such as job losses and reduced income. This instability makes it challenging for some homeowners to meet their mortgage obligations, leading to the unfortunate consequence of foreclosure.
High mortgage payments
Another contributing factor to the increasing number of foreclosures is the burden of high mortgage payments. Many homeowners have mortgages with interest rates that have risen, causing their monthly payments to become unmanageable. In some cases, borrowers initially signed up for adjustable-rate mortgages, unaware that their payments would increase significantly over time.
Home equity erosion
A decline in home equity is also playing a role in the foreclosure surge. Home values have not been rising as consistently as they have in the past, leaving some homeowners with little to no equity in their homes. When unforeseen financial difficulties arise, these individuals have limited options to tap into their home's equity, making it difficult to avoid foreclosure.
In September, foreclosure filings across the nation increased 18.4% from 2022. Unfortunately, Florida ranked seventh highest for foreclosures. As the housing market continues to navigate these issues, it is important for homeowners to explore potential solutions to help mitigate the risk of foreclosure.]]>On Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=502902023-10-16T18:27:12Z2023-10-16T18:27:12Z1. Warranty deed
A warranty deed is the most common type used in real estate transactions. It provides the highest level of protection to the buyer as it guarantees that the seller has legal ownership of the property and that there are no hidden liens or encumbrances. In essence, the seller warrants that the property is free and clear.
2. Quitclaim deed
A quitclaim deed is a simpler form of deed, often used in non-sale situations, such as transferring property between family members or correcting minor title issues. Unlike a warranty deed, a quitclaim deed provides no guarantees about the title's status. It merely transfers the seller's interest in the property to the buyer.
3. Special warranty deed
The special warranty deed, sometimes called a limited warranty deed, falls between the warranty deed and quitclaim deed in terms of protection. With this deed, the seller guarantees that they have not caused any title defects during their ownership of the property. However, they do not warrant against issues that may have existed before their ownership.
The type of deed used in a real estate transaction in Florida can significantly impact the buyer's legal rights and protections. With homes typically only on the market for 61 days in Sarasota, understanding the implications of each type of deed may help ensure a smoother process.]]>On Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=502882023-09-22T22:30:42Z2023-09-22T22:30:42ZProperty ownership details matter
You should provide precise details about the property you intend to pass to your beneficiaries. Include the full address, legal description and any identifying information to avoid any confusion among beneficiaries.
Specify the sharing of property
If you have multiple heirs and want them to share the property equally, make your wishes clear in the will. Specify whether they should sell the property and split the proceeds or if one heir has the option to buy out the others.
Taxes and expenses
Passing on real estate can come with tax implications. Inform your heirs about potential property taxes and any outstanding debts related to the property. Your beneficiaries will need to address these expenses when the property passes to them.
Consideration for minor heirs
If you plan to leave property to minor children or grandchildren, you may need to establish a trust to manage the property until they reach the legal age. This also entails naming a trustee to oversee the trust until your heirs can access it.
One survey shows that as many as 68% of Americans do not have a will. Without a will, the distribution of your belongings can become needlessly complex and your valuable real estate assets might not pass on to your beneficiaries in the way you intended.]]>On Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=502862023-08-24T14:55:05Z2023-08-24T14:55:05ZShort sale
When homeowners owe more on their mortgage than the current market value of their property and cannot afford the mortgage payments, they might opt for a short sale. Only 3% of properties in the U.S. with mortgages have this type of negative equity. In this scenario, you would sell your property for less than the outstanding loan amount, with the lender's approval.
Generally, you cannot qualify for another mortgage for two years after a short sale and three after a foreclosure.
Foreclosure
Foreclosure is when homeowners default on their mortgage payments and the lender takes legal action to repossess the home. In Florida, this process is judicial, meaning the lender must go through the court system to foreclose on a property. Once the property undergoes foreclosure, the lender then sells it, often at an auction, to recover the money.
Effects on credit
A foreclosure will generally hurt your credit score more than a short sale. Foreclosures can drop your credit score by 200-300 points, and they remain on your credit report for seven years. Short sales, though still negatively impacting your credit, tend to have a lesser effect and might even show up on the credit report simply as "paid" or "settled."
If faced with the dilemma of choosing between a short sale and foreclosure, consider the implications on your credit score, the length of time you wish to stay in your home and any potential tax consequences. Remember to communicate with your lender, as they may have solutions or alternatives to assist you.]]>On Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=502802023-07-29T03:26:25Z2023-07-29T03:26:25Ztitle insurance has limitations, these companies can find these common real estate title issues.
Forged documents
In today’s society, you have to watch for identity theft and dishonest people. However, you should also be aware of property theft and fraud. There are people who forge ownership documents of properties and file them with public records. In addition, someone with a similar name or fraudulent documentation could impersonate the property owner and sell real estate that he or she does not own.
Unfortunately, the office may consider these documents valid. When a title company starts investigating property ownership, it can find these forgeries. However, if you do not find them before you close, you could jeopardize your ownership rights even if you started making payments or paid for the real estate in full.
Inheritance challenges
Many heirs sell their homes and land after their benefactors die. However, at times, missing or unknown heirs may reappear later. In addition, other family members may contest the will to gain rights to the property that the heirs received.
In addition, you may purchase a property from an estate where the owner died seemingly without a will. However, when the heirs find the will, even if it takes years, its provisions guide the land’s ownership and usage. If you have already purchased the property, you could lose it to these missing heirs.
These are only two of the issues you may encounter when you purchase real estate. Protect yourself by learning about other common title problems.]]>On Behalf of Riddell Law Grouphttps://www.rlglawfirm.com/?p=499452023-06-29T22:46:52Z2023-06-29T22:46:52ZWhat does the state consider unpermitted additions?
Unpermitted additions refer to any construction or modifications made to a home without the necessary permits from the local building department. They can include anything from a new bathroom or bedroom to a remodeled kitchen or a deck. When you are in the process of buying a home in Florida, you should always ask about any modifications made and whether they had the necessary permits.
How can unpermitted additions affect the home buying process?
Buying a home with unpermitted work can cause some complications. Firstly, you might face challenges getting a mortgage because lenders might be reluctant to finance a property with unpermitted work. Secondly, insurance companies might not cover any damage caused by or to the unpermitted addition. Lastly, if local authorities discover the unpermitted work, they could give you penalties, fines or force you to remove the addition.
What can you do if you find unpermitted additions?
If you discover a property has unpermitted additions, you have several options. One option is to ask the seller to obtain retroactive permits. The seller would need to apply for permits for the addition and have it inspected by the local building department. Another option is to negotiate a lower price on the property to compensate for the risk you are assuming. In some cases, you might decide to walk away from the purchase entirely if the risk is too high.
By asking the right questions and considering your options carefully, you can make an informed decision and ensure your new home is a sound investment.]]>