Homesteads Held Under A Trust

The following information was obtained from a Minnesota Department of Revenue Fact Sheet, titled "Homestead Classification for Property Held Under a Trust"

What is a trust?
A trust is a legal term to describe an ownership arrangement for a piece of property or assets.

 

The grantor of the trust is the person or persons who created or established the trust.  They are also referred to as the trustor(s).

 

The trustee is the person or entity who has the custodial duties, who oversees the trust.  Often a trustee is a disinterested third party like a bank or law firm, but a trustee can be anyone, even the grantor or beneficiary.

 

Anyone who receives any kind of benefit from a trust is a beneficiary.  For example, if you had the right to live on property held under a trust, you would be a beneficiary.

 

In order to qualify for the homestead classification for property held under a trust, you must meet all three of the following criteria:

1)  Occupy the property that is held under the trust on or before December 31.

2)  Be either:

      a)  the grantor of the trust or their surviving 
      spouse; or

      b)  a qualifying relative or surviving relative of
      the grantor or the trust.

3)  Be a Minnesota resident.

 

To apply for the homestead classification for your residence, you must complete the applications provided by the assessor's office by December 31.  You will need to provide Social Security numbers for each grantor and one of the forms that is required and provided by the assessor's office, must be notarized.  You do not need to apply each year for this homestead.

 

The Department of Revenue provides further details about tax laws and programs on its website:  www.taxes.state.mn.us or you can also look at the State Statutes section  273.124, Subd. 21 for more information or contact the Wilkin County Assessor's office at (218) 643-7162.