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, the exemption is based on the interest owned. For example, if someone owns a fifty percent interest in a homestead, they will receive half of the exemption amount. A homeowner who is totally disabled on January 1 typically qualifies for a disability homestead exemption. An eligible disabled person aged sixty-five or older may choose between the disabled and elderly residence homestead exemptions but cannot claim both. However, a life estate does qualify for a homestead exemption, provided the life estate interest is specified on the deed, and the life estate holder meets all homestead requirements.
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