Florida has perhaps the most robust homestead protection laws in the country. Some people even move here specifically to take advantage of these protections. The rules regarding homestead protection can be complex, so we recommend talking with a local asset protection attorney about taking advantage of homestead protection in Coral Gables.
A homestead encompasses a residence and the surrounding property, including any outbuildings. In a city, it includes the residence and a contiguous half acre of property, while a homestead outside a city includes a residence and up to 160 contiguous acres.
A homestead must be owned by a permanent resident of Florida and be their principal residence. It cannot be held by a business entity, even if the sole shareholder of the entity lives in the property. However, the title can be held by the resident’s revocable living trust.
It is not required to be a single-family home. Condominiums, cooperative apartments, and stationary houseboats are entitled to homestead protection if they are owned by someone who uses it as their primary residence. An attorney could review a Coral Gables resident’s circumstances and determine whether their home is entitled to homestead protection.
Under the Florida Constitution, Article X, Section 4, a homestead cannot be attached by creditors. If someone purchases and moves into the homestead property before a creditor records a judgment in the county where the homestead exists, the creditor cannot force a sale of the homestead to satisfy the debt. The protection continues after death— homestead property can pass to a surviving spouse or heirs, and cannot be attached by creditors of the deceased, as long as the Last Will and Testament of the deceased owner does not direct that the property be sold.
A Floridian can only obtain homestead protection if they intend to use the property as their primary, permanent residence. A resident can demonstrate their intent to live in the property permanently by making it their official address for mail, registering to vote there, keeping clothing and important possessions there, and filing tax returns from that address. A person can file a declaration of domicile with a court, but the declaration alone is insufficient to establish that a property is the declarant’s permanent residence.
An important feature of homestead protection is exemption from claims under fraudulent conversion laws. Even after a creditor has filed a lawsuit, a Florida resident can protect assets from creditors by buying or improving homestead property, and the full value of the property is protected. An attorney in Coral Gables can help a debtor devise a plan to protect as much of their wealth as possible using homestead protection.
Although the law protects a resident’s right to maintain a home for themselves and their heirs, there are exceptions to its coverage. Some creditors may attach or force the sale of homestead property.
For example, the IRS can put a lien on homestead property. Similarly, state taxing authorities and local governments can put a lien on homestead property for failure to pay state or property taxes. Residents concerned about tax debt should speak with a Coral Gables attorney to learn the extent of homestead protection.
When the property owner voluntarily accepts a lien by applying for a mortgage, a mortgage holder can foreclose on homestead property. Similarly, workers engaged to build or improve a residence or the landscape can put a mechanic’s lien on the homestead property to secure payment for their services.
Florida law allows state residents substantial protection for their homes and surrounding property. However, the protection is not absolute, and you should work with an experienced estate planning attorney to ensure you are getting the full benefit of the homestead protections. Contact Veliz & Associates, P.A. to discuss homestead protection in Coral Gables. We can set up a consultation as soon as possible.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
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