Do you know how Florida’s homestead exemptions and rights work? You may be surprised butFlorida law limits your right to devise your West Palm Beach home if it is a homestead.How can you tell if it is homestead property? What are the limitations? Check out our crash course on Florida Homestead.
Florida Homestead: the Basics
- Florida homestead varies depending on where you live, if you are in a city it consists of one half acre inside the municipality or if you are out of a municipality it applies to 160 continuous acres.
- Do you know what that means?
- If your property is split by a local dirt road that is probably fine but if its split by a highway you may only be able to protect the part with your home.
- If homestead property is held with a right of survivorship then do not worry about this blog it does not apply to you!
- What about if one spouse owns the house by themselves in their own name?
- Then its time to look out for homestead, even if the house would be considered “non-marital property” in a divorce, it may still be your spouse’s homestead.
- If held without a right of survivorship you may not be able to validly devise your home in a will unless it is in line with the rules which state you shall do one of two things.
- If there are no minor children you can leave it to your wife, but not someone else.
- Assuming you have a minor child or multiple, first you can give your wife a life estate and the remainder to your children shared “per stirpes.”
- If your wife chooses she may elect in the alternative a one half undivided interest with the rest shared between your children per stirpes.
- So what is the big deal with homestead?
Homestead Protections: the Sacred Cow of Florida
- Do you know why you want homestead protections because they can protect you.
- Did you know that homestead prevents a judgment creditor from attaching and foreclosing a lien on your property?
- In fact it protects against all creditors except for the big three.
- Do you know what they are?
- First of all backed ad valorem (property) taxes are subject to attachment and foreclosure, that makes sense right?
- The government always gets paid, and there are two things you cannot avoid: death and taxes, homestead is not a silver bullet after all (but its close!).
- Also included in that is home owner’s association taxes and fees.
- You can also not protect it against a mortgage on the West Palm Beach home.
- Otherwise who would ever give a mortgage?
- Finally mechanic’s liens from the property (i.e. liens charged by workers and artisans) are not subject to homestead protections in West Palm Beach.
- Other than that though you and your wife and your heirs who take the property after your spouse passes will get this awesome shield from creditors.