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Florida's Homestead protections are in reality three distinct protections under Florida law, each with a different function and effect: property protection, reduced house taxes, and protection of surviving spouses and minor kiddies. Each is described below.

The Florida Constitution exempts homestead property from execution and levy by most creditors. As long as the home qualifies as homestead, the quantity that may be protected is not limited, making the Florida Homestead a fantastic asset defense vehicle. Even when the purchase of the homestead was designed to defeat creditors, the security still applies.

Under the Bankruptcy Reform Act of 2005, nevertheless, debtors in bankruptcy may lose all or even a part of the protection. In bankruptcy, homestead security is capped at $125,000, unless the person occupied the Florida homestead house and previous Florida homestead properties for 1215 days before the bankruptcy filing. Also, transactions into Florida Homestead within ten years intended to defraud creditors could be challenged by the bankruptcy trustee. house inspect

National collectors, including the Irs, mortgage holders, and individuals holding mechanics liens on Florida homestead house aren't limited by the Florida homestead provisions.

Under Florida's Save yourself Our Domiciles Act, the assessed value of a Florida Homestead is fixed to a growth of only 3% annually.

If a Florida resident passes away possessing a Homestead in his or her own name, if the resident had minor children, the minor children have entitlement to the whole property, or, if the resident was married, to no less than a remainder interest in the property. A surviving spouse is eligible to at least a estate in Florida Homestead house. The homestead terms could be a trap for the unwary, particularly for those with house plans written while a person of another state. For instance, a person owning a in New York and a condominium in Florida might have decided, while a New York resident, to leave the house to his spouse and his condominium to a child from a first marriage. If the individual retires to Florida as a person and then dies, his spouse will inherit the house under the terms of the will and then be provided with a estate in the Florida condo.