Veterans who have a 100% service-connected, permanent, and total disability as rated by the U.S. Department of Veterans Affairs are eligible for a property tax exemption on their primary residence in Virginia (Virginia Code § 58.1-3219.5). This exemption can also extend to the surviving spouses of these veterans. However, the spousal exemption ceases once the surviving spouse passes away or remarries; and the exemption does not transfer to other heirs or beneficiaries of the estate.
There are some common misconceptions about the exemption. One misconception is that the exemption is automatically applied. In reality, veterans (or their surviving spouses) must apply to their local Commissioner of the Revenue for the exemption and provide the necessary documentation to prove eligibility (Virginia Code § 58.1- 3219.6). The application requirements are outlined in 1VAC80-10-90; but each Commissioner of the Revenue’s office has its own application form and specific instructions, usually posted on their website.
Another misconception is that if a disabled veteran’s residence is titled in his or her revocable living trust, it will not qualify for the exemption. However, a significant change in Virginia law, effective since 2019, now allows real property owned by a disabled veteran's revocable living trust to qualify for the property tax exemption. Disabled veterans can now enjoy the same tax relief on their primary residence regardless of whether it is titled in their name or is in their revocable living trust.
By allowing homes placed in revocable living trusts to qualify for the property tax exemption, veterans can now integrate tax benefits with their broader estate planning strategies. This flexibility ensures that veterans can protect their assets, plan for future generations, and manage their estates more effectively without the fear of losing valuable tax exemptions. It also simplifies the process of transferring property to beneficiaries, as the trust can dictate the terms of distribution without going through probate.
Your JGB attorney can provide expert advice on revocable living trusts and assistance with deeding property into the trust to ensure retention of the property tax exemption.
TrustGuard™ 2025
TrustGuard™ enrollment for 2025 is now open. TrustGuard™ is a JGB proprietary, process-driven program designed for our clients who are serious about protecting their investment in their Trust-based Estate Plan with an annual review.
A subscription to TrustGuard™ includes: an annual review of your estate plan and trust funding assistance for the enrollment year, any required changes to your plan, access to our exclusive TrustGuard™ quarterly newsletter, and an invitation to our Annual TrustGuard™ appreciation event. Clients who are eligible for TrustGuard™ are those who are renewing their TrustGuard™ membership and new clients who executed their trust documents in 2024.
Enrollment for the 2025 TrustGuard™ period ends on February 28, 2025. JGB clients who do not re-enroll during the enrollment period will not have another opportunity to become members of TrustGuard™. Participation in TrustGuard™ is entirely voluntary. The TrustGuard™ enrollment subscription is billed at an annual flat rate. Clients who pay their enrollment in full prior to February 1, 2025 will receive a $100 discount off of the price of full enrollment. A separate email will be sent with an enrollment form to all eligible TrustGuard™ clients.