27 Mar Can mom qualify for the Senior Freeze?

Q. My mother and I own a home together and we both reside in it. She is a senior but I’m not. If I remove my name from the deed, will that allow her to eventually apply for and possibly receive a Senior Freeze for the property taxes? If my name remains on the deed, could she still qualify?
— Hoping

A. We’ve got some good news for you.

First, let’s cover what it takes to qualify for the Senior Freeze.

Your mother is eligible for participation if she is over 65, has continuously lived in New Jersey for the past 10 years and owned and occupied her current home for the past three years. The property tax due on her home also must be paid in full, said Shawna Brown, an elder law attorney with Mandelbaum Salsburg in Roseland.

If she is seeking eligibility for the 2018 tax year, she must have met the eligibility requirements in both 2017 and 2018 and her annual income in each year cannot have exceeded $87,268 and $89,013, respectively, Brown said.

Applications for the 2018 tax year must be filed by Oct. 31, 2019.

“The term `freeze’ is somewhat of a misnomer because the program does not freeze a senior’s entire property tax payment,” Brown said. “Rather, eligible seniors are reimbursed for the amount by which their current annual property tax amount exceeds the property tax amount in the senior’s first year of eligibility for the program.”

Now, to your specific question: If your mother meets the eligibility requirements for the program, the fact that she co-owns the home with you will not bar her from receiving a reimbursement, Brown said. However, she will only be entitled to partial reimbursement of the tax increase in proportion to her percentage of ownership in the home.

“If you convey your interest in the home to your mother, making her the sole owner of the property, she will be eligible for the full reimbursement amount for the first tax year that she is sole owner for the entire year,” Brown said. “The program does not prorate reimbursements for mid-year changes in ownership.”

Brown said you should keep in mind that conveying your interest in the home to your mother could have unrelated legal and tax consequences that could outweigh the savings from the reimbursement. That means you should speak to an attorney or tax advisor before you make any big moves.

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This story was originally published in March 2019.

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