If you are a resident of West Palm Beach you are probably already aware of the homestead property tax exemptions. Did you know that you are also entitled to protection from judgment and levyof certain homestead property in West Palm Beach? This benefit may be able to protect the family home from creditors during probate do you know how? Check out this case out of the Miami Appeals Court that shows how residents of Florida can protect their homes from being taken by judgment and creditors.
Florida Constitutional Protections
- The Florida Constitution has two sections that deal with the term homestead, one is about property taxes found in section 6 of Article VII of the Florida Constitution.
- This blog centers around a different section, in Article 10, protection from creditors.
- If you own your home in your own name (not through a trust or LLC) the Florida Constitution protects it from being seized in a judgment.
- There are only three real exceptions in the constitution, property tax arrears, a mortgage and a lien from a contractor who worked on the property.
- There is some case law about the fact that if you obtain funds through fraud and throw them into a homestead the Court will not respect it.
- Other than that though these provide broad protection from creditors.
- Also the benefit passes on to your spouse and minor children through probate.
- Did you know that?
- Check out this recent case out of the Third District Court of Appeal to learn more.
Grisolia v. Pfeffer
- This was a case surrounding the probate of an estate that owed $500,000 on a note.
- The creditors attacked the home of the debtor estate through the probate process of claiming as a creditor.
- The estate’s beneficiaries, the former spouse and minor children objected.
- They claimed that the house was the man’s homestead and they were right!
- This case was a bit more complicated than most because of the fact that the man was not a US citizen and had not obtained permanent resident status in the United States.
- That being said for permanent residents and citizens in West Palm Beach the answer is simple, your home is protected if you leave a spouse or minor children.
- Is your estate subject to large creditor claims?
- Talk to an experienced Palm Beach probate litigator today about how to protect your assets from judgment creditors and other creditors once probate starts.
Want to learn more about creditor protection through the Florida Constitution?
Check out the entire case by clicking here.