Full question:
My wife and I built a home in Garden Ridge (Comal County), Texas and took out one mortgage (converting the construction loan to a permanent loan) after completion in June. We will be filing for a homestead exemption on our property taxes. But our question deals with my mother-in-law, who moved in two months ago (we built the house with her in mind). She took the over-65 and disability exemptions on her old home. What type of deed do we file to give her an interest in the home so that we can file these additional exemptions? Is it a Special Warranty Deed for a 50% interest (whereby her exemptions would be half of normal)? Or is it legal to do a deed conveying her a 100% life estate only, retaining the fee simple title in our name?
- Category: Real Property
- Subcategory: Deeds
- Date:
- State: Texas
Answer:
If a person qualifies for a homestead exemption and is not the sole owner of the property to which the homestead exemption applies, the exemption received is based on the interest owned. For example, if one owns a 50 percent interest in a homestead he or she will receive one half, or $7,500, of a $15,000 homestead offered by a school district.
A homeowner who meets the definition of a totally disabled person under state law on January 1, ordinarily qualifies for a disability homestead exemption. An eligible disabled person who is 65 or older may not receive both a disabled and an elderly residence homestead exemption, but may choose either. However, he or she may NOT claim BOTH over 65 and disabled person exemptions.
A life estate does qualify for homestead as long as the life estate interest is shown on the deed, and the holder of the life estate meets all the homestead requirements.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
