The Moor You Know | Episode 4 – Homestead Exemption

From Moorhead:

I’ve heard there are special rules for homestead property. Is that homestead exemptions for property taxes or does it mean something else?

Everyone is familiar with the homestead exemption for taxes. But, the homestead is important for some other reasons. First, the Florida Constitution exempts homestead property from liens or judgments other than taxes, mortgages, and liens caused for home improvement. This exemption is unlimited. That’s why so many rich people in trouble build homes in Florida! Anyway, if you were to be sued and get a large judgment against you, it will not force the sale of your homestead property.

Another type of homestead provision pertains to the sale of the property. A spouse is required to join in the conveyance of homestead property even if he or she has no ownership.

Finally, the Florida Constitution controls how homestead property passes. Upon the death of the owner, the surviving spouse is vested with a life estate with a remainder in the deceased’s heirs. If the property is owned by the spouses jointly, it passes to the other spouse.

Finally, even gifts of homestead in a will are restricted. The Constitution states, “the homestead shall not be subject to devise if the owner is survived by spouse or minor child, except the homestead may be devised to the owner’s spouse if there be no minor child.”

WRITTEN TRANSCRIPT

Do you understand what homestead means in Florida?

If you own a home in Florida, you probably know about the homestead exemption for taxes. But, HOMESTEAD is important for other reasons. In just two minutes, I’ll share why.

Homestead = Where you live

A “homestead” is considered a person’s primary residence… and it carries some SPECIAL rules in Florida.

Homestead property is exempt from liens and judgments against you.

The first… is a big one. The Florida Constitution exempts homestead property from liens or judgments other than taxes, mortgages, and liens caused for home improvement.

If you are sued, it won’t force you to sell your homestead.

This exemption is unlimited. So, if you are sued and get a large judgment against you, it will not force the sale of your homestead property. That’s why so many rich people in TROUBLE build homes in Florida!

Another type of homestead provision pertains to the SALE of the property.

Spouse = life tenant gets to live there for the rest of their life.

Heirs = get full ownership, equally divided when the spouse dies.

A spouse is REQUIRED to join in the TRANSFER of homestead property, EVEN IF they have no ownership.

This protects the family home from being sold unfavorably by the spouse that owns the property.

The Florida Constitution also controls how homestead property passes.  When the owner dies, the surviving spouse is vested with a LIFE ESTATE, and then it passes to the HEIRS of the deceased owner. If the property is owned by the spouses JOINTLY, it passes to the other spouse.

“the homestead shall not be subject to devise if the owner is survived by spouse or minor child, except the homestead may be devised to the owner’s spouse if there be no minor child.” – Florida Constitution

Homestead restrictions also affect your will. Regardless of what is stated in a will, the homestead will be inherited by the spouse or minor child. If there is no minor child, the property automatically goes to the spouse.

So, before applying for a homestead exemption in Florida, check with a real estate lawyer to see how ownership of YOUR homestead property will be affected.

A GOOD lawyer can deliver a plan to protect YOUR homestead interests.

That’s… the Moor You Know.