As a homeowner, what laws should you be aware of after you’ve closed on your home? James Bernicky sits down with host Paige Ronchetti to test her knowledge with a new edition of Legally Speaking: Truth or Myth?
Property tax exemptions automatically go into effect as soon as you become a homeowner
MYTH! Homeowners must do their own research on available exemptions. “It’s important to periodically look and make sure you’re getting your maximum tax exemptions,” says Bernicky. “My own parents, about 20 years after they bought their house, they refinanced and realized they never had their home exemptions.”
Properties can be put in a corporation or LLC at any time
TRUTH! “Putting a property in a corporation is a great idea,” says Bernicky. “You can have tax savings, liability savings.”
It is important to review who is on the deed/title of your home periodically
TRUTH! What is true when you acquire the home may not be true in the future. “There are a lot of people who come to us for different reasons and we review the deed of their home,” says Bernicky, “and we find there is an ex-spouse on title, or it’s actually in their parents’ name who have passed and they’ve just been paying the bills.”
It’s a good idea to put your children on the deed to your home in case of emergency
MYTH! While it is perfectly legal to put your children on the deed to your home, doing so can have unintended consequences. “When you put your kids on the deed to the home,” says Bernikcy, “they are taking on all that financial responsibility, so they may not qualify for their own home.”
It’s a good idea to put property in a family or living trust
TRUTH! Putting your home in a family trust ensures that the home will automatically pass to the designated beneficiary if something were to happen. There are also tax benefits to putting a home in a family or living trust.
A family trust is the same as a land trust
MYTH! Although they are similar, a family trust and a land trust are not the same. A land trust protects the identity of the owner.
Guest: James Bernicky, Managing Attorney – Bernicky Law Firm
