For many Florida homeowners, the family home is more than a building — it’s a legacy. It represents decades of financial investment, memories, and stability. But when it comes to passing that home to heirs, the legal strategy you choose can make the difference between a smooth transfer and an unexpected financial shock. 

Two of the most common estate-planning tools Florida residents consider are Joint Ownership (specifically Joint Tenancy with Right of Survivorship, or JTROS) and Revocable Living Trusts. Each option can avoid probate. Each option can transfer property efficiently. But they come with very different benefits, risks, and long-term consequences — especially when it comes to property tax reassessment under Florida’s Save-Our-Homes (SOH) cap. 

This blog explains both tools clearly, compares them side by side, and helps you decide which approach best protects your home and your heirs. 

Why This Decision Matters in Florida 

When a Florida homeowner dies, the property often undergoes full reassessment at market value unless specific protections are in place. That reassessment can cause the annual property tax bill to skyrocket for surviving family members. 

The SOH cap limits annual increases in assessed value to 3% or CPI, whichever is lower — but this protection can be lost at death unless the transfer qualifies for an exception. 

Choosing the right estate-planning tool can determine whether your heirs keep your low tax assessment or face a dramatic increase. 

Option 1: Joint Ownership (JTROS) 

Joint tenancy with right of survivorship is one of the simplest estate-planning tools. It allows a property to pass instantly to the surviving co-owner without probate. 

Under Florida law, JTROS has one powerful advantage: 

✔ It can preserve the Save-Our-Homes cap 

If the surviving owner already qualifies for homestead and files the correct forms, the SOH cap does not reset, preventing a major tax hike. 

Your uploaded file outlines this clearly: 

• JTROS qualifies as “no change of ownership” under §193.155(8)(a) 

• The surviving owner must file DR-501 (Homestead) and DR-501T (Portability) by March 1 of the following year 

• The cap remains only if the survivor uses the property as their primary residence 

This makes JTROS extremely attractive for families looking to avoid tax increases. 

But this simplicity comes with significant risks. 

Risks of Joint Ownership 

1. Loss of Full Control 

Once you add someone to your deed, they legally own part of the home. 
That means: 

• They can block a sale 

• They can encumber the property 

• They may need to sign off on refinance or improvements 

Even if you trust the person completely, life circumstances can change. 

2. Gift-Tax Implications 

Adding someone as a co-owner is treated as a gift if they don’t pay their share of equity. 

If that gift exceeds the annual exclusion amount, the IRS requires filing Form 709. 

Although many cases don’t trigger actual tax, paperwork is unavoidable — and misunderstandings can lead to IRS problems. 

3. Creditor and Divorce Exposure 

Perhaps the most overlooked risk: 

Your heir’s debts become your problem. 

If your co-owner: 

• Is sued 

• Goes through a divorce 

• Owes back taxes 

• Has creditor judgments 

…their portion of your home becomes vulnerable. 

For many families, this risk is simply too great. 

4. Medicaid Look-Back Problems 

Adding a non-spouse co-owner counts as a gift for Medicaid eligibility purposes. 

This can trigger: 

• A 5-year penalty period 

• Delayed benefits 

• Increased long-term care costs 

This alone makes JTROS unsuitable for many seniors planning ahead. 

5. Unexpected Legal Complications 

Cases like Russell v. Hassett (2024) show that mistakes in titling homestead property can lead to retroactive taxes, disputes, and litigation — even when intentions were good. 

Joint ownership is deceptively simple, but a single misstep can be costly. 

Option 2: Revocable Living Trust 

A Revocable Living Trust is one of the most common estate-planning tools in Florida. It avoids probate, keeps the estate private, and allows seamless management if the homeowner becomes incapacitated. 

Unlike joint ownership, a trust does not automatically preserve the SOH cap for heirs. However, it offers many other advantages that make it a safer, more flexible long-term strategy. 

Benefits of a Revocable Trust 

1. You Keep Full Control 

When you create a revocable trust, you remain: 

• Trustee (in full control) 

• Primary beneficiary (for your lifetime) 

Your successor trustee only takes over when you can’t — not before. 

You always maintain authority. 

2. No Creditor or Divorce Exposure 

Unlike joint ownership, adding someone as a successor trustee or beneficiary does not expose your property to: 

• Their creditors 

• Their lawsuits 

• Their divorcing spouses 

Your home remains legally protected because ownership stays with the trust, not the individual. 

3. No Gift-Tax Issues 

Because you didn’t transfer ownership during life, no gift occurred — and no Form 709 is needed. 

4. Protects Against Incapacity 

If you become ill or unable to manage finances, your successor trustee can step in immediately, avoiding: 

• Court guardianship 

• Delays 

• Conflicts among family 

Joint ownership cannot provide this level of structure or protection. 

5. Allows for Complex Inheritance Planning 

Trusts can: 

• Distribute assets gradually 

• Protect heirs from creditors 

• Prevent misuse 

• Maintain property for multiple beneficiaries 

Joint ownership cannot accomplish these goals. 

Downside of Revocable Trusts 

1. They do not automatically preserve the SOH cap 

When the homeowner dies, transferring property from the trust to heirs usually triggers reassessment — unless certain homestead protections are built into the trust. 

Trust drafting matters. A poorly drafted homestead clause can cause: 

• Loss of tax benefits 

• Title issues 

• Litigation 

This is why trusts must be customized under Florida law. 

2. Trusts require more setup work 

Trusts involve: 

• Drafting 

• Funding 

• Coordination with deeds and financial accounts 

But this “extra work” is what gives them their protection. 

Comparing Joint Ownership and Trusts 

Feature	Joint Ownership (JTROS)	Revocable Trust
Avoids probate	✔ Yes	✔ Yes
Preserves SOH cap	✔ Yes (if survivor qualifies)	✖ Not automatically
Control during life	✖ Shared	✔ You retain 100%
Gift-tax issues	✔ Possible	✖ No
Exposure to heir’s creditors	✔ High	✖ None
Medicaid impact	✔ Problematic	✔ No gifting issues
Protects against incapacity	✖ No	✔ Yes
Allows complex estate planning	✖ Minimal	✔ Extensive

So Which Strategy Is Best? 

The answer depends on your priorities: 

Choose Joint Ownership if: 

• The co-owner already lives in the home 

• You trust them completely 

• Your top priority is preserving the SOH cap 

• You accept the risks of shared ownership 

Choose a Revocable Trust if: 

• You want maximum protection and control 

• You want to avoid creditor or divorce risks 

• You need advanced estate planning 

• You want to prevent disputes among heirs 

• You cannot risk gift-tax or Medicaid complications 

For many Florida homeowners, the best solution is a hybrid approach — using a trust for long-term protection and exploring other tools like Lady Bird deeds to shield homestead property efficiently. 

Final Thoughts 

Your home is too valuable — financially and emotionally — to risk with the wrong strategy. Both JTROS and revocable trusts offer legitimate benefits, but the consequences of choosing without understanding the law can be severe. 

A personalized plan ensures that: 

• Your heirs avoid unnecessary taxes 

• Your wishes are honored 

• Your property stays protected 

• You maintain full control while living 

This is where professional guidance makes all the difference. 

Call to Action 

If you want to preserve your home’s value and protect your heirs from unexpected tax increases, Lumsden Law can help you choose the right strategy with confidence. 

Visit: www.lumsdenlawfirm.com 
Schedule a consultation and build a plan that truly protects what matters most. 

FAQs

1. Does joint ownership always protect my home from probate in Florida?
Yes, as long as the joint owner is alive at the time of your passing. With Joint Tenancy with Right of Survivorship, the home with Joint Tenancy with Right of Survivorship (JTROS), the home passes directly to the surviving owner without probate. However, it may create risks like loss of control, creditor exposure, or gift-tax issues.

2. Will putting my home in a revocable trust preserve the Save-Our-Homes (SOH) cap?
Not automatically. A trust must be drafted with specific Florida homestead provisions. If drafted correctly, the SOH benefit may be preserved, but mistakes can trigger reassessment.

3. Which option protects me better from creditors or family disputes?
A revocable living trust provides stronger protection. Adding someone as a joint owner exposes the home to their creditors, lawsuits, and divorce claims — a trust does not.

4. What is the safest strategy to transfer my Florida home to heirs?
Most homeowners benefit from a customized trust-based plan. Some may also use tools like an enhanced life estate deed (Lady Bird deed) to combine tax protection with full lifetime control.