A Texas property transferred into a Trust can still qualify for the homestead exemption. However, the property must be placed into a qualifying Trust. A qualifying trust in Texas is a trust that allows a beneficiary or the trustor to live in a property as their primary residence and receive the homestead exemption.
What is a qualifying trust?
1. The trustor or beneficiary has the right to live in the property as their primary residence
2. The trustor or beneficiary can revoke the trust without consent
3. The trustor or beneficiary can exercise general power of appointment over the property
4. The trustee acquires the property through a court order or instrument of title
5. The court order or instrument of title is recorded in the county’s real property records
How long can the beneficiary live in the property?
1. The beneficiary can live in the property for life
2. The beneficiary can live in the property for a set number of years
3. The beneficiary can live in the property until the trust is revoked or terminated
How can the trust maintain its qualifying trust status?
1. A separate deed can be used to allow the trust to maintain its qualifying trust status
2. A trust amendment can be used to allow the trust to maintain its qualifying trust status
3. A court order can be used to allow the trust to maintain its qualifying trust status
A Lawyer can assist you in setting up a qualifying trust to preserve your Homestead Exemption.