How does Marriage Equality affect couples looking to buy a home?

Before same sex marriage was made legal in Florida, they were unable to enjoy many of the benefits and protections reserved for married couples such as Social Security, retirement benefits, insurance benefits, and most importantly estate tax and property ownership benefits for the surviving spouse. Let’s review some of them:

Property Ownership as Tenants by the Entireties. This is a "unity" of ownership that is only available for a married couple and has some very unique characteristics and benefits. It is an efficient way to pass assets to a spouse and avoid probate on the death of the first spouse whether or not a will exists.

The first key benefit of this type of ownership is the protection from creditors if only one of the owners (spouses) is deemed liable for damages in a lawsuit. So, in a lawsuit environment, you cannot take assets from a spouse if the other spouse is not liable as well. If the property is their “homestead” then protections increase.

It requires both parties to sign any deed transferring ANY interest in the property. One spouse cannot sell, dispose or gift any interest without the other spouse's consent/signature as they could with other forms of title. Example, one spouse cannot mortgage the house for a business deal without the other spouse's consent, nor gift any interest to another family member like parents or children from a prior marriage.

Federal law exempts a certain amount of money from federal estate taxes and federal gift taxes for all property left to a surviving spouse (currently the exemption is $5.49 million). The surviving spouse does not pay taxes on any amount he or she receives from the deceased spouse that's under the exemption limit.

Ready to buy? Call me! I will help you find your next home!

Maria T. Villalobos * Cell. 786-285-5855 * info@bestmiamihomes.net