In the hypothetical case that you get sued or your spouse does, and you are afraid of losing your family house, don’t be; There is a legal mechanism designed to protect your primary residence, known as Homestead, from certain creditors or legal actions. These protections vary by jurisdiction and are often established to ensure that individuals and families can maintain a place to live even in challenging financial or legal circumstances.
The Florida Homestead law, found in the state constitution, is a state law that protects a Florida resident’s home from judgment creditors. Under the law, a judgement cannot become a lien against homestead property.
There are types of Homestead Protection:
- Protection from Forced Sales by Creditors: This is one of the most protective homesteads in the United States because there is no limit to the value of the property that can be protected from creditors.
- Protection to family members such as minor child and spouse in case of death: Homestead protection laws offer crucial safeguards to family members, by shielding their primary residence from certain creditors’ claims.
- Reduction in taxes or tax exemptions: The Homestead exemption is a state tax deduction for homestead properties. It reduces the assessed value of a home by $50,000 for property tax purposes. It also caps the increase in the estimated value of the Homestead equal to 3% or the annual Consumer Price Index (CPI), whichever is less.
It’s important to note that not everyone automatically qualifies for this protection. To be eligible for Florida Homestead Protection, you must meet specific criteria. Additionally, you’ll need to complete an application and provide proof of residence by March 1 of the tax year in question.
Who qualifies for the Florida Homestead Protection?
To be eligible for Homestead Protection in Florida, you must meet these criteria:
- Be a Natural person. Homestead protection is limited to natural persons with a legal interest in the property. The title can be held in your name or the name of your revocable living trust.
- Live in the Property. The property is your permanent residence or the permanent residence of someone you can claim as dependent on your taxes.
- You must have lived at the property on January 1 of the tax year in question. So, if you want to claim Homestead exemption on your 2023 taxes, you must have lived in that property in question on January 1, 2023.
- You cannot rent the place for over 30 days (about 4 and a half weeks) in a calendar year.
Required Documentation for Homestead Tax Exemption
You will need to submit the following when applying for the homestead tax exemption in Florida:
- A valid Florida driver’s license.
- A copy of the recorded deed or tax bill.
- Vehicle registration.
Beyond financial benefits, Homestead Protection fosters stability in challenging times, offering a secure residence during tough situations. Safeguarding what you love and work for is the most important thing you can do! For further information or assistance in this matter, you can give us a call or schedule a 15-minute call now.
