Over 65 Disabled – Shana Acquisto, broker of Acquisto Real Estate and honored to have Dr. Blake Bennett here on our TNT show this morning, we are diving into exemptions right now and we’re going to talk about the over 65 or disabled exemption and how this is a game changer for you as a realtor. So listen up.

Ok, over 65 and disabled, both of those can be treated similarly. They both offer the same thing. OK. Once you claim the over sixty five, at a minimum, you get ten thousand dollars additional off of your homestead for school tax purposes. Now, again, other entities can recognize that over sixty five you’ve got them all over the board. Some will offer an additional sixty thousand for city taxes, say, but we’re doing what we can. We can pull up the tax rates and I can show you in the local area.

But if we’re just looking at the school taxes, only the school taxes, you get a minimum additional ten thousand dollars off for your over sixty five exemption. OK, so you get your homestead of the money for a minimum of twenty five plus another ten in the same goes for the disabled. You get the twenty five plus an additional ten. Now if you’re both over sixty five and disabled you have to pick one or the other.

What would you pick. Does it matter? I don’t think it really matters. Well. I guess it would depend on the age of my spouse. OK, and what if for the for the over sixty five who the surviving spouse of anyone over 65, as long as that surviving spouse is 55 or older, OK, then that over sixty five exemption can stay with them.

Oh as long as they’re fifty five or over 55 or older, the surviving spouse is 55 or older, they get to keep that over sixty five exemption. So that having an honest difference.

Right. Exactly right. Exactly right. Yes. I mean you know so I guess that it would depend on which you know what the age of my spouse was. If my spouse was younger than our then maybe the over sixty five would be the would be the way to go. Sure. Now the big game changer though. Yes. Is when you move whenever someone over 65 moves. This happened to my mother just last year. My mother moved from West Texas last year to the Metroplex. Finally got her here. OK, I’ve been bugging her for ten years to come to the Metroplex, to be close to the grandkids.

And how old is your mom, if you don’t mind me asking?

Well, she would kill me if I said her age, but she’s had her over sixty five exemption for ten years. OK, ok, so she’s had her over sixty five exemption for a while. Well we start looking around at property here and she falls in love with the community in the Metroplex. I mean it was she, she felt at home, this is where I need to be. And she was so excited after we, after we went and looked at the home, she was going to build a home.

OK, well, we go to my daughter’s soccer practice and she starts she’s a banker’s daughter and she starts asking about property taxes. So I pull up the tax rates and I start calculating them. And I said, Mother, it’s going to be about seventy five hundred dollars a year. I’ve seen my mother cry twice in her life, one was at my grandfather’s funeral, the other one was that day, literally, my mother does not cry. She does not show that. But she was so much in love with this home and she wanted this life.

So there was a deal breaker. That was a deal breaker for she said, I don’t think that I’m going to ever going to be able to move here until her son comes in and saves the day.

Well, I guess I saved the day a little bit. I was on the phone with the central appraisal district about another matter. And, of course, you know, at the end, I like to give them a little grief and and talk a little bit. And I said, well, you know, you’re killing my mother. And the producer said, what are you talking about? What are you talking about? And I said, your taxes, your property taxes are too high. My mother cannot move here. Right.

And they said, well, she’s over sixty five, right? I said, yeah, she she has been for about ten years. And they asked me why didn’t she just put the percentages over Port Port, those percentages over. And I said, what is that. Well, that’s the game changer. My mother lived in a small two bedroom, one bath home in west Texas, Pearmain being floor that was built in nineteen twenty eight. The value of this property was thirty eight thousand dollars. That was market value at the time.

So taxes she probably had For tax purposes for her over sixty five. Her home was valued somewhere in about the 17 to 20 thousand dollar range. OK, so there had been a run up. Yes. Doubling in price absolutely. Over that time period. But she had them frozen at the 17 to 20 thousand dollar range. What you do whenever you put that percentage over is they looked at what is how much are you paying actually paying in school taxes in West Texas with the over sixty five exemption.

How much would you be paying, which is higher? Yeah, for simplicity purposes, let’s say that she was paying a hundred dollars. OK. But she would be paying four hundred without the exemption, so that’s a twenty five percent is what? Twenty five percent is what she’s paying of the actual taxes that would normally be due. OK, she goes to the central appraisal district in her home in West Texas. She gets a certificate of transfer.

Certificate of transfer, yes.

In the old central appraisal district, she moves here, updates her driver’s license. And let’s say that the property she takes that certificate to the new central appraisal district and says, I want to transfer my percentages or port my percentages. OK, let’s say that she would be paying four thousand dollars here in school taxes or. Well, once that percentage is applied, she’ll pay twenty five percent. Of that school, right? So instead of 4000 here, she’ll be paying a thousand dollars to my mother’s property tax bill went from seventy five hundred dollars down to about four thousand dollars. It was cut nearly in half.

Yeah, I mean, that’s that’s big, right? And it allows people to still be able to move. And, you know, we forget about that where we are. It’s it’s a fairly young professional community. Right.

But absolutely. There’s a lot of people here that are getting at that age where they could they could take advantage of this and move, right? Absolutely.

Yeah. I’ve heard I’ve been screaming this at the top of my lungs since I learned this a year ago. I think I heard you. It’s why you’re here.

Yeah, exactly. And my mother is just so unbelievably happy in her neighborhood. Oh, that’s good. Would I be correct to say that the market price of homes have gone up a little bit in the past six to eight months? Yeah, they’ve gone up a lot in The last 30 days.

Yeah, exactly. Well, since yesterday at eleven o’clock, market prices

Have been established every day. Exactly. And and I’ve heard several real estate agents say that, that they’ve talked to people over 65 that want desperately to downsize and they’ve even picked out I can build a house in X, Y, Z. I’m ready to go. Right. But it’s the property taxes now that if I move, I have them frozen on my old home. And if I move, I’m not I’m not going to be able to afford it because the property taxes are going to be so high.

So what’s the difference if they went and just reapplied? Right. OK, let’s say let’s say that my mother just moved here and just instead of getting the certificate of divorce for that, you just OK, well, my taxes are this. I’m going to go ahead and file.

Let’s say that we didn’t know about it and she just moved here and filed her over sixty five. It would be frozen at that four thousand dollar mark. And so she would start over. Yeah, building that that that that frozen amount, but she doesn’t have to. Right. There’s two keys here. You have to be moving Texas residents to Texas right away and you have to apply for it.

OK, if you if you meet both of those, then you’re golden. Wow. Now check with the central appraisal district where you’re moving because some of them will not accept just a letter from that. You hand deliver. Some want it in a sealed envelope from the other central appraisal district. Some want it mailed from the old Central District. So check with the new one and find out how do you want it. And then just go to your old central appraisal district and say, I need that certificate,

So I have a situation now that we do have a client and her mom sold her home in east Texas. Yes. And it was an old home. She is now moving here. I’m sure she had no idea about this.

Probably not. And she is purchasing a Delaware home and so excited about it. But she was really upset with her budget because of the taxes. So after you close, can you still go back and get. Absolutely. So I’m going to do about that. And yes, she could do that. Absolutely. You may not have been sixty five at the time.

Is she not as if she has claimed her over 65 on the old home? My mother in law did the same thing. She sold her home and was building a home herself in the Delaware community. Right? Right. And of course, whenever her house so quick where her home was not ready. Oh, OK. And so she had to rent a place to live until her new home was was completed. Well, didn’t matter. After her home was finished, she went to the central appraisal district, said, yes, I’ve already sold that home, but I need my certificate.

So Agap doesn’t matter when you know you sell in the next time you purchase, regardless of the time in between, you can have not heard of a maximum amount of time. OK, I have to wait.

Well, if you’re sixty five, I mean, I don’t know how long. I mean I don’t know what that’s old or anything.

I hope it’s not over. Right. Oh no jato but it is, it’s a game changer. And I’ve seen several real estate agents say well now all of those that were older, over sixty five that were wanting to downsize but didn’t think that they could because of the run up in the price of the market. And the taxes are going to be so much that I might as well stay where I’m at. Not necessarily now. And so you have a lot that are getting back on the phone and saying, hey, I’ve found a way.

Found a way. You found a way. So think back to all of those people that might have called you that were over 65 wanting to downsize, but didn’t think that they could because the taxes were going to be too much. Yeah.

And I can think right now of like three clients that we have that their parents live somewhere else in Texas and they would love to get them here, but they don’t want to live, you know, they just don’t want to live. So this is a great opportunity to reach out to them and say, hey, I know your mom or your dad doesn’t want to move right now, but think about this. Right.

And if you can get them to move, you need to remember this. Absolutely provide that value to them because, you know, there is something to be said to having your loved ones close to you. And taxes are outrageous. I mean, they are we you know, we have great everything’s great here. Our property taxes really are high. And, you know, it’s it’s a game changer for a lot of people. And they won’t move into us or, you know, we were just talking earlier how people should move up. Yes. But there should be I don’t know, our taxes are just it prevents them from from doing that.

Yes, they are expensive. I will say that it was a game changer for my mother, my mother, instead of downsizing. And, you know, in her retirement, she upsized, obviously, I don’t know of of a property here, one or two bedroom, one bath that you’ll find for thirty eight thousand dollars. Right in the Metroplex. So my mother’s budget was two hundred and fifty thousand. She built a house for two hundred forty nine thousand nine hundred ninety nine dollars because she was going to be under that budget a Lot.

He stuck to that budget on the dot and she’s extremely happy in this home. It would not have mattered if she moved into a ten million dollar home or if she moved in. She downsized. She could still put those percentages over. She could transfer them. And trust me, I did not believe the central appraisal district in the beginning. I called Detroit County four times and asked for the person that handled the over 65 to and I asked them the same questions and finally they said, Stop calling me. You understand

Well, yes. All right. Yes. And so I stopped calling them like they ask. And I started calling Collin County and asking them the exact same questions until they said, stop calling me. You understand? Exactly. I’m banned from calling over there. But again, it’s one that a lot of people don’t know about it. And in fact, I’ve I’ve run into in doing this for over a year, I’ve only seen two people that have known about this. So I think it’s something that really isn’t talked about. It’s not known in the market.

I would say it’s definitely not known. But now we know about it and we can go out and and use this, you know, information and and talk to people about it and educate these these clients about this, you know, and that’s where we add the value. Right. And they will love you for that.

So you’ll have somebody that not only will the person that’s over 65 remember, they talk. I mean, in my mother’s neighborhood, they know everything that’s going on with everyone. In fact, they know all their dogs names and they all meet at the mailbox every night, but they talk to their friends and they spread this word like crazy.

Sure. I started talking up well, my mother started talking immediately after she moved in. Everyone in that neighborhood that was moving from Texas went down and immediately transferred and they jumped on it quick. Yeah. And not only will they talk to their friends, but they’re also talk to their children,

You know, and how good does it feel when you’re able to to create this opportunity for someone to move closer to their their family and save that money? I mean, that’s that’s what we do for a living. And when things like that happen, it’s so rewarding. Absolutely. Just love.

And you talk about the relationships who take care of someone’s mother and father and save them money and have that mother and father think the world of you. They will talk to their children and remember, their children are probably upsizing their homes and moving on average, what, every three years or so they’re going to need a real Estate agent that is competent, so then you might get a family situation where it’s not just your helping out the parents, but you also are helping the children, the grandchildren. It could be multi generation here.

So it could set up a domino effect on some clients in the future that you can help. Yeah. Ok, well, we’re going to wrap this up and we thank you so much for coming again and providing just some unique opportunity for us and giving us just, you know, all this information and great information of my ad. So help us out there in this crazy market. So thank you for having me on. I appreciate it.

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