Several important cases have come out recently on the interesting topic of homestead rights of a wife following the death of her husband. This last week on February 25, 2015 the Fourth District Court of Appeals issued its decision in the case of Kelly v. Spain. The Court was asked to decide if a homestead exemption (originally obtained by a Husband alone) inures to the wife’s individual benefit after his death where (i) the property was held in tenancy by the entireties, (ii) the wife never filed for her own exemption and (iii) the wife maintained residency at the homestead. The Court held that the homestead exemption did inure.
- In 1985, Frank Spain applied for and received a homestead exemption for the house he owned in his name on South Beach Road in Hobe Sound. After receiving the exemption, he married appellee Mary Jane Spain in April 1985.
- From that time, the couple resided at the house as their primary residence for the remainder of their marriage. On February 24, 2000, Frank conveyed the house via warranty deed to himself and Mary Jane, as tenants by the entireties. Mary Jane never applied for her own exemption.
- The couple received property tax bills in both their names, consistent with the entireties ownership, and continued to receive the homestead exemption. Frank died on April 25, 2006. Mary Jane continued to occupy the house as her primary residence. From 2007 through 2011, the Martin County Property Appraiser continued to apply the homestead exemption’s tax benefits and the “Save Our Homes” assessment cap to the home and sent notices of proposed taxes to “Frank K. Spain and Mary Jane Spain”; likewise, the Tax Collector sent tax notices addressed to “Frank K. Spain and Mary Jane Spain.”
- In May 2012, the Property Appraiser learned of Frank’s death from the filing of an Order of Summary Administration. This probate filing was the Property Appraiser’s first notice that Frank had died in 2006.
- Two months later the Property Appraised informed Mary Jane that they had placed a$283,070.45 lien on her home based on erroneously filed taxes based on the homestead.
You really have to empathize with this lady and not only did she fight that lien she paid the lien first, then went to court to get her money back AND she won! From an estate planning standpoint this does not mean you should just assume the homestead will transfer for you the case had three factors that settled for her favor(listed above).
Homestead provides numerous protections that you should take advantage of in considering your own estate plan. Lower your taxes by using the tax deals mentioned in this case! Also secure your home against creditors using this constitutional exemption in Florida!
Want to read the entire case? Here it is: Kelly v. Spain