THE IMPORTANCE OF A FLORIDA HOMESTEAD PROPERTY
If you have a homestead property, you have a powerful tool that can go a long way to protecting your wealth in estate planning. In Florida, homestead laws are extremely favorable and allow people to exempt a portion of their property from debt collection. However, there are some limitations and distinctions.
The attorneys at the Estate Planning Law Office of Mary Alice Gwynn, PA, want you to understand the most important parts of Florida homesteading.
THE FULL VALUE OF YOUR HOME
The homestead law in Florida allows you to declare your home to be a homestead that is the house and property you live on is offered this designation. There is no upper limit, so your home can be worth millions and it will still be covered as a homestead.
UP TO A CERTAIN GEOGRAPHICAL SIZE
While the worth is limitless, the size is not. Depending on the area you live in, whether it is urban or rural you will face specific limits in the acreage that you can protect as a homestead. An urban home can homestead up to half an acre, while a rural home has a limit of 160 acres.
CANNOT BE TARGETED BY CREDITORS
Once your home is a homestead, it is immune from debt collection efforts. It is safe. If you file bankruptcy, you still live there and you will not have to sell it to pay your debts. Since resolving debts is a part of the probate process, having a home that is not subject to debts is an incredible asset to have.
LIMITATIONS ON HOMESTEAD PROPERTY
This does not mean that there are no limitations. If the house is used as collateral or subject to mechanic's liens or federal taxes, they may force the home to be sold to pay them. Also, homesteading will not get you out of paying debts that predate the filing of the homestead paperwork.
GET THE ANSWERS YOU NEED
To properly understand how a homestead will help you protect your wealth, contact our office in Delray Beach today. We offer free consultations and lawyers with a dedication to hands-on, personalized service. Reach us by email or by calling.