Current through Register Vol. 71, No. 33, August 16, 2024
Rule 9-337 - HOMESTEAD DEDUCTION AND SENIOR CITIZEN/DISABLED TAX RELIEF337.1 For purposes of DC Code §§ 47-849 through 47-850.03 and 47-863:
(a) An owner of real property shall be a holder of title as set forth in the land records of the Recorder of Deeds, including the holder of an estate in fee simple or a freehold interest of indeterminate duration, including a life tenancy, but does not include a holder of a leasehold interest or future interest;(b) An individual who is not a title holder of record is not an owner of real property, except that the following individual shall be deemed to be an owner:(1) A trust beneficiary who occupies real property owned of record by the trustee, as sole owner of an irrevocable special needs trust if the trust beneficiary has a disability as defined in Section 1614(a)(3) of the Social Security Act, approved October 30, 1972 (86 Stat. 1471; 42 U.S.C. § 1382c(a)(3)). For the purposes of this subparagraph, a trust is a special needs trust if the trust instrument:(A) States, among its purposes, that the trust assets are not intended to be counted in determining the beneficiary's eligibility for needs-based governmental benefits;(B) Names the beneficiary with a disability as the sole trust beneficiary during his or her lifetime; and(C) Provides that the beneficiary with a disability shall not serve as trustee;(2) The grantor, settlor or trustor of a revocable trust that holds bare legal title to real property provided, that the grantor, settlor trustor is a beneficiary of the trust, resides in the real property as his or her principal residence in the District, exhibits all incidents of ownership of the real property and retains the power to revoke the trust; or(3) A partner of a partnership that holds record title to real property where all partners reside in the real property as their principal residence in the District.337.2 The term "revocable" shall mean that the grantor, settlor, transferor, creator or trustor of the trust has the right to recover property transferred to the trust and to end the trust at any time, thereby regaining absolute ownership of the trust property.
337.3 A trust is revocable if the grantor, settlor or trustor expressly reserves the power to revoke the trust under the terms of the trust instrument.
337.4 If a power to revoke is not expressly reserved, the revocability of the trust is determined under the law governing the trust. Trusts created under District law prior to March 10, 2004 are presumed irrevocable, while District trusts created on or after that date are presumed revocable.
337.5 For purposes of the homestead deduction and the senior citizen/disabled tax relief, if the grantor, settlor or trustor of a revocable trust resides in the real property as his or her principal residence in the District, then he or she is deemed to be a beneficiary of the revocable trust.
Final Rulemaking published at 34 DCR 1837 (March 20, 1987); reserved by Final Rulemaking published at 63 DCR 015785 (12/23/2016); amended by Final Rulemaking published at 64 DCR 1448 (2/9/2018)