Beneficiaries of revocable and irrevocable trusts who are over 65 and meet the income test can qualify for a property tax exemption on their homesteads. This year the exempt amount is $159,840.
The trust (revocable or irrevocable) must have at least one of three terms:
- A specific right of the beneficiary to occupy the premises;
- The right to amend or revoke the trust; or
- The power to withdraw the homestead premises from the trust and place the record title in the occupant’s name.
The applicant must apply for the homestead exemption between February 1 and June 30 of each year.
There is a sliding scale on the exempt amount tied to income. If an applicant has over $49,000 in income the exempt percentage is zero.
