Homestead- Protection Against Creditors for Your Principal Residence

 Posted by at 1:29 pm  Estate Planning News
Nov 052015
 
Homestead- Protection Against Creditors for Your Principal Residence

Florida has some of the best homestead protections in the nation. Article X, Section 4 of the Florida Constitution exempts homestead property from levy and execution by judgment creditors. Simply put, your homestead property is your principal place of residence and most creditors cannot foreclose on your homestead. In order to qualify for homestead protection, you must be a Florida resident, the home must be your principal residence, and it must be owned by a natural person. Although property owned by your revocable trust can still qualify as homestead property, a residence, even if it is your principal residence, owned by More…

Obtaining The Florida Homestead Tax Exemption Following Transfer To A Trust

 Posted by at 4:32 pm  Estate Planning Information
Oct 032012
 
Obtaining The Florida Homestead Tax Exemption Following Transfer To A Trust

Article VII, Section 6 of the Florida Constitution currently allows for homestead protection from ad valorem real property taxes.  The effect of this provision is to exempt the first $25,000 of property value for all purposes and also to exempt another $25,000 of value for homes worth up to $75,000 for all purposes but the property taxes calculated for schools.  This exemption may be further expanded following the 2012 election. Many people wonder how they can preserve their homestead protection from taxes if the property is transferred to a revocable or irrevocable trust.  Florida Statute § 196.031(1)(a) says that every More…

The Pitfalls Of Placing A Florida Residence Into A Revocable Trust

 Posted by at 4:26 pm  Estate Planning Information
Jun 142012
 
The Pitfalls Of Placing A Florida Residence Into A Revocable Trust

One of the essential tools in the Florida estate planning attorney’s toolbox is the revocable living trust.  These trusts are an effective method for avoiding the arduous Florida probate process while also protecting family privacy and helping to plan for the possibility of incompetency.  So what is the problem with using these marvelous instruments to hold the family residence? Many people are under the impression that holding a personal residence in a revocable trust is an innately bad thing, especially when it comes to protection from creditors.  Back in 2001, Florida estate planners became alarmed at a bankruptcy case which More…

Homestead in Florida

 Posted by at 4:05 pm  Estate Planning News
Apr 082011
 
Homestead in Florida

Oftentimes we find that people are unclear as to the various homestead protections enjoyed by residents of Florida. There are three kinds of homestead protection in Florida: 1. Homestead protection in the form of an exemption from taxes found in Article VII Section 6 of the Florida Constitution. 2. Homestead protection from forced sale by creditors found in Article X, Sections 4(a) and (b) of the Florida Constitution. 3. Restrictions on the transfer of the homestead found in Article X section 4(c) of the Florida Constitution. Each of these provisions play a separate and distinct role in protecting and preserving More…