If I Short Sell My House, Do I Have To Pay The Lender The Difference?
Video Summary
If I sell my house, do I have to pay the difference to my lender? I’m going to give you a “lawyer answer” because it’s not always the same with every transaction. It’s transaction and borrower-specific. The usual case is that if you have a short sale, the lender usually forgives any difference between the amount that they receive from the sale of the property and what is owed. And a lot depends also on whether it’s a first mortgage versus a second mortgage. With second mortgage holders, some of them will not agree to forgive the difference and that can be treated a couple of ways.
Sometimes they require the borrower in the short sale to sign a promissory note for a certain amount of money. It may not be for the full amount or they may negotiate a lump sum amount, which they will accept to forgive the difference. With second mortgage lenders, a lot has to do with who the lender is. There are certain banks that will not release you from liability and they will release the property from their lien; however, they will continue to hold you responsible for that amount. Whether or not they sue you or bring a lawsuit for the difference, that remains to be seen. Usually, if they do, the amount can be negotiated to a probably $0.10 to $0.20 on the dollar as to what you owe if you can work out a lump sum payment.
Also, you must remember that if they do forgive your loans, they can issue what they call a 1099-C, which is a report to the Internal Revenue Service that they forgiveness of debt is considered income. If this is on your primary residence then you can probably avoid paying any taxes. If you’re taking a loss on your rental property, then you can avoid having to pay taxes by filing the tax return and having a basis higher than what they amount that you sold the property for, so that you have a loss on the property that offsets the gain. So whether or not they forgive the debt or not depends on your particular circumstances, particularly if you have the ability to pay. If you show a nice fat financial statement or good income, they’re more likely to order you to make a contribution at the closing as far as the unpaid balance. So if you have any questions about that, you can give me a call at 847-2288. Thank you.
- Published in Real Estate - Foreclosure, Videos
If I Have a Homestead Exemption in Florida, Can My Spouse Hold a Homestead Exemption in Another State?
Video Summary
If I have a homestead exemption in Florida, can my spouse hold a homestead exception in another state? The answer is, “No,” because if you’re husband and wife, the property appraiser determines that it is a family and therefore you’re saying that the family has their homestead or permanent residence in Florida if you have a homestead exemption. Whenever you sign the application for homestead, you say that you don’t have an exemption in another state and that goes for your spouse.
It’s even more difficult whenever people are going through a divorce proceeding and they’re not divorced and they’re separated for some time and they’re not going through a divorce proceeding, whether or not both spouses can obtain a homestead exemption. I know that our local property appraiser, Mike Wells in Pasco County, is really tough on this and in fact investigates any number of people who apply for a homestead exemption to determine whether or not they have homestead in another state. If they do, then he slaps a homestead lien against their property for all the exemptions they received.
I don’t know how other property appraisers are as far as investigating this, but if your spouse is getting homestead in another state, then I don’t suggest you try and get homestead in Florida because if you get caught, the homestead exemption penalties are quite severe. He puts a lien against your property for all these back-due taxes. So I would talk to the property appraiser of you do want to try and do that and ask them before you apply for a homestead exemption here in Florida in your name. If you have any other questions, give me a call at 847-2288. Thank you.
- Published in Real Estate, Videos
Elder Law Video Index
- How Can I Legally Require My Neighbor to Move a Fence, Structure, Or Landscaping That Crosses onto My Land?
- What Estate Planning Steps Should I Take If I Own Multiple Properties or Out of State Property?
- How Do I Choose a Reliable Executor, and What Responsibilities Will They Have?
- How Do the Powers of Attorney and Healthcare Directives Fit into My Estate Plan?
- If I Move to Another State, Will My Current Will Still Be Valid?
- What Are the Tax Implications for My Heirs Under My Current Estate Plan?
- Can A Trust Protect My Assets from Creditors, Lawsuits, Or Long Term Care Costs?
- How Can I Make Sure My Beneficiaries Receive Their Inheritance Quickly and Smoothly?
- What Is Better Per Stirpes Or Per Capita?
- How Do I Get an Advance or Loan on My Share of the Probate Assets In The Estate or Trust?
- How Can I Reduce Potential Conflict Among Beneficiaries?
- Does An Executor of a Will Get Paid for His Time?
- How Can I Find Bank Accounts in My Parents’ Names After They Die?
- What Does “Per Stirpes” Mean in Estate Planning?
- How Easy Is It to Set Up POD On Bank Accounts, What’s Involved?
- Can I Force My Sibling to Sell Property, Which I Own with Them Jointly?
- If I Put My Children on My Deed, Can They Force Me to Sell My House?
- What Kind of Decisions Can a Health Care Proxy Make?
- What Should I Do if My Fence is on My Neighbors Property?
- How Can You Remove Someone from a Quit Claim Deed?
- How Is a Home Calculated for a Divorce?
- Who Executes My Estate Plan?
- What is Advanced Care Planning?
- If a Contract Is Breached, Who Pays the Fees If We Go to Court?
- Can I Help Control My Children From Spending Their Entire Inheritance at 18?
- How Does President Biden’s “American Families Plan” Effect Your Estate Plan?
- Are There Any Tax Implications When an Estate Is Settled?
- Is It Safe to Do a DIY Will Services?
- What is the Difference Between a Supplemental Trust vs Special Needs Trust?
- How Much Can You Leave Beneficiaries Without Facing Estate Tax?
- How Are Creditors Handled in Probate?
- Do I Need a Trust For My Child With Special Needs?
- What Property Can Go Into a Living Trust?
- What Information Do You Share About Me With Other Beneficiaries?
- How Do I Safeguard Protect The Assets Were Left Behind?
- Why Would I Need a Disposition Without Administration?
- What Are My Duties As An Executor?
- Is The Previous Power Of Attorney Still Valid?
- How Do I Get My Deceased Parents Annuity?
- How Do I Dispute Charges On My Credit Card?
- Do I Have To Pay The Decedent Credit Card Bills And Medical Bills From A Joint Account?
- How Do I Check The Tax Status On An Estate?
- My Parents Just Passed Away And They Did Not Have Time To Update Their Life Insurance Beneficiaries, What Can I Do?
- Should You Purchase Insurance on Vacant Land?
- If The Decedents Will Names Me As The Executor/Personal Representative, Can I Show The Will To The Bank And Close The Accounts, In The Decedents Name?
- What Is The Difference Between Will and Estate Planning?
- Do I Need Require a POA For Assets And Healthcare Decisions?
- Does a 401k Have To Go Through Probate?
- Are My Assets Protected If I Place Them In A Trust?
- Do I Have To Pay Income Tax On Money I Receive From An Estate?
- Can a Credit Card Company Put a Lien On My House If I Do Not Pay Them?
- If My Husband Dies, Do I Have To Pay His Medical Bills?
- If I Go To A Nursing Home, Will They Take My House?
- I Am Ready To Retire, What Legal Documents Do I Need?
- Do I Have To Pay My Mother’s Bills When She Dies, If I Am On Her Bank Accounts?
- How Do I Protect My Healthcare Rights?
- Will My Assets Be Protected From Creditor Claims, If I Place Them In a Trust?
- How Do I Decide What Type of Will Is Best For Me?
- What Is Not Covered By Insurance After A Hurricane
- How Do I Handle An Inherited 401k
- What Do I Need To Include In My Will
- When Should I Get A Living Will?
- What Is The Difference Of A Living Will And Medical Power Of Attorney?
- What Is A Testamentary Trust
- How Can I Help My Kids Not Spend Their Inheritance After Turning 18
- Do You Have To Pay Capital Gains Tax On A Home Sale
- What Do I Need To Create A Medical Directive
- WHAT IS A MIRROR IMAGE WILL
- ARE MY ASSETS PROTECTED FROM CREDITORS IF I SET UP A TRUST
- Can I Contest the Handling of Money By My Power Of Attorney Representative
- When Should I Make Updates To My Estate Plan
- Does My Will Have To Be Probated
- Revocable Trust Vs. Irrevocable Trust: What’s The Difference
- What Is a Testamentary Deposit Account
- Does Revocable Trust Need a Bank Account
- What is a Reverse Mortgage
- Why Would I Need to Open a Trust Account
- What Makes Will Invalid?
- How Do I Determine If a Deceased Person Owns Property?
- Can I Legally Access A Deceased Person Email Account
- Who Gets a Deceased Persons Vehicle When It Has a Loan
- How Do I Transfer My Homestead
- How Do I Determine If a Deceased Person Has Life Insurance?
- Who Can Serve as A Personal Representative?
- Can I Legally Drive a Deceased Persons Vehicle?
- What Are the Drawbacks of a Living Trust?
- If I Have a Living Trust, Should I Also Have a Will?
- Does A Living Trust Avoid Estate and Probate Taxes?
- Should Bank Accounts of the Deceased Person Be Closed Immediately Upon Death?
- How Do I Release a Vehicle Lien?
- Who Will Serve as the Personal Representative if There is No Will?
- Is Retirement Income Taxable to a Beneficiary?
- Is It Ever Too Late To Start The Florida Probate Process?
- How Long Does Probate Take?
- What Legal Documents Should Everyone Have?
- Can a Bank Refuse to Honor a Power of Attorney?
- Can a Family Member Override Power of Attorney?
- What is Required to Make a Last Will Legal?
- Where Does the Money Go if No Beneficiary Is Named On My Deceased Spouse’s Bank Account?
- When Is An Estate Too Small For Probate?
- What Estates That Need Probate And Those That Don’t?
- How Often Should I Update My Durable Power of Attorney?
- Do I Need to do Estate Planning Even if I Don’t Have Much Money?
- How Do Assets Pass at Death?
- What is the Minimum Age to Execute a Power of Attorney?
- What is the Uniformed Transfers to Minor Act?
- Can Real Estate Titles be in a Child’s Name?
- How Do I Access Someone’s Bank Account After They Die?
- What Do I Do After The Death Of A Family Member?
- How Do I Designate Where My Retirement Accounts And Investments Go Upon My Death?
- How Does Homestead Pass Upon Death?
- Can A Parent Change Their POA If Their Agent is Not Cooperating With Their Instructions?
- Do Proceeds of “Payable On Death” Bank Account Have To Go Through Probate?
- Why Is It Important To Do Estate Planning If I Have More Liabilites Than Assets?
- How Often Should I Update My Estate Planning?
- Is It Important To Have A Will Even If You Have No Assets?
- Why Do I Need A Durable Power Of Attorney?
- What Is Elder Law?
- Ask Jaleh: Estate Planning Considerations after Medicaid approval.
- Ask Jaleh: Special Needs Planning For People With Disabilities
- How Is Estate Planning I Do In Florida Impacted When I Move To Another State?
- What Can Be Done If My Agent Under My Power of Attorney is Misusing Funds?
- Is a Revocable Trust Preferable to a Will?
- Who Should I Appoint as My Healthcare Surrogate?
- How Do I Obtain a Power of Attorney?
- What Are the Benefits of a Health Care Savings Account?
- Asset Protection Video Index
- What Do I Need to Know About Asset Protection?
- How Do I Protect My Assets From Lawsuits?
- How Do I Protect My Assets From Creditors?
- What Is An Estate Planning Lawyer’s Role When Negotiating A Marital Settlement Agreement?
- How Can Domestic Life Partners Use Estate Planning to Provide for One Another?
- If a Couple Divorces, What are the Right of the Ex-Spouse in the Former Spouse’s Estate?
- Do I Need A Health Care Surrogate For My Adult Son Or Daughter?
- Elder Law Video Index
- Can I Leave Money to My Pet?
- Do I Need a Living Will?
- Can I Prepare Estate Planning Documents for My Relative with Dementia?
- What is a Health Care Surrogate?
- Advance Medical Directives Video Index
- Estate Planning Video Index
- What’s the Difference Between a Will and a Trust?
- Do I Need a Health Care Surrogate if I have a Living Will?
- Published in Estate Planning, Videos
Ask Thomas Mitchell: What Is The Inheritance Tax In Florida?
Summary
I’m Tom Mitchell, a partner at Waller & Mitchell. One of the things I do here is I do the tax work for our office. I do have a master’s in taxation, and sometimes I get asked by people, “What is the inheritance tax, and does Florida have one?” Well first of all, the short answer is no, Florida does not have an inheritance tax.
An inheritance tax is actually the tax on a beneficiary’s right to receive an inheritance. It’s levied by the state, and Florida does not have one. Most of the states that have inheritance taxes are in the Northeast and the Upper Midwest: Pennsylvania, New York, Massachusetts, Ohio, Illinois, for example. The flip side of the inheritance tax is the estate tax.
That’s on a decedent’s right to give away property, and Florida does not have an estate tax either, so you’re in good shape there. However, there is a federal estate tax. Sometimes you may have heard it referred to as the “death tax”. There’s a lot of movement in Congress to do away with it, but for the time being we still have it. But the good news is that the exemption amount, that is the amount that you have to be over before you have to pay the tax, is $5 million per person.
So for a husband and wife, that’s $10 million, but for all us mere mortals, we don’t have to worry about it. This is something for the one-tenth of the one percent (or the one-hundredth of the one percent.) We’re at 5332 Main Street in New Port Richey, Florida. Our number is 727847-2288. Thanks.
Ask Thomas Mitchell: Is My Will from Another State Valid in Florida?
Summary
I’m Tom Mitchell, a partner with the law firm of Waller & Mitchell, and I do estate planning here in the office. And I frequently get questions from people that want to know if their will from up north is still valid now that they’ve moved to Florida, and the short answer is yes, it is still valid. The United States Constitution has a provision that’s called the Full Faith and Credit Clause, and what it means is that states have to honor the laws of other states. So if your will was valid in the state that it was drafted, then it will be valid here in Florida.
Having said that, there are still a couple of reasons why you might want to consider rewriting your will once you’re down here. First of all, you should be checking your will and rewriting it any time there’s a substantial change in your life situation and, the last time I heard, retiring and moving to Florida qualifies as a pretty substantial life changing situation. And the second and more practical reason is that if there’s any issue about the validity of your will, such as being drafted in Pennsylvania or Ohio, the witnesses to the will are all located in Pennsylvania or Ohio, so they’re gonna have to be brought to Florida and put up while we have a trial to contest the validity of your will. It’s a lot cheaper to pay $150.00 for a new husband and wife will than it is to fly in a bunch of people from Pennsylvania and put them up here for a week while we have a trial.
So that’s just a practical reason why even though your will might still be valid, you probably want to take a look at having it changed to a Florida will. Maybe not the first month you’re here, but certainly in the first six months or a year you should. We’re located at 5332 Main Street in New Port Richey, Florida. Our telephone number is 727-847-2288. Thanks.