real estate law question?

Question

Here is my problem, My wifes grandparents are 85 and 91yrs old. They own a 1800 sq. ft. 2 story home that they have lived in for the past 17 years. Their property taxes are 1100 dollars under the current SOH and homestead plan. Without the exemptions the taxes would be 6700 dollars based on a market value of $284,000 per the county website. The grandmother has not been upstairs in over 5 years due to physical reasons and of course that is where the bedrooms and bathtubs are. So they have their beds downstairs in the dining room and she baths herself with a washcloth and a bucket. My wife and I live in a 1 story 1000 sq. ft. home with 2 bedrooms and 2 baths which was fine for us until we had our first daughter 3 years ago and then twins girls last year. Our taxes are 985 dollars a year under the current SOH and homestead plan, we have lived here for 9 years. Without the exemptions the taxes would be 3300 dollars. The grandparents have offered to swap houses with us which would help all of us out. We need more room with the children and they need for grandma to shower for obvious health reasons. They intend to leave the house to my wife after they pass anyway so they figure why not do the switch now. They dont want to buy my house but are willing to rent it to cover our current mortgage payments. How, if any, is there a way to make the move without the property taxes jumping to 10,000 dollars a year between the two properties. The $2100 in property taxes we pay now between the grandparents and ourselves we can handle but jumping to 10 grand seems absurd since neither of us are anywhere close to being rich. They are obviously retired and living on a small fixed income and we are tapioca due to the cost of 3 kids and only 1 income producer as my wife stays home with the kids. Any ideas would be greatly appreciated. I say we make the switch without saying anything to anyone but grandpa doesnt want grandma to get thrown in the pokie in the county finds out. Thanks for your time

We live in Florida

Answer 1

What you're proposing to do is considered fraud. Their taxes are cheaper due to age and homestead exemption. If they do not live in the home, they cannot claim homestead exemption. Period.

If you get caught, not only will you have the additional taxes to pay, but back taxes, interest and penalties.

If you can't afford it, then don't do it - same as everyone else.

Answer 2

"What you're proposing to do is considered fraud. Their taxes are cheaper due to age and homestead exemption. If they do not live in the home, they cannot claim homestead exemption. Period."

How is this fraud? He said that the grandparents taxes are MORE than his. They are family, and like the other gentleman said, no titles are changing, just residences. They would still own the home.

Answer 3

That was some interesting reading - I'd never heard of Florida's Save Our Homes provision before, so I had to go through a lot of sites (and read many pro/con tirades about the proposed changes). And honestly? You should talk to an expert, such as a Florida property tax attorney. I found a great blog by one, and one of his posts covers how to find the right one for you: http://floridapropertytaxappealslawyers.blogspot.com/2007/04/how-to-select-property-tax-attorney.html

Answer 4

The seller sold us a house and we found out the someone was murdered in the house and he didn't tell us. Does the law require that this information should have been told to us.

Answer 5

You are family members.

Absent some specific state law to the contrary, there is nothing to says your grandparents cannot visit your house and stay there as long as you allow them to. And nothing that prevents you from visiting their house and staying there as long as they allow you to.

The houses wouldn't change ownership or title -- you would just each be visiting the house of a family member for an extended period. I can't imagine that there are laws in your state that would prohibit that.

Laws vary by state. Check your local listings.