Homestead Exemption

Homestead Exemption or Homestead protection is one of asset protection strategies you can use on your real estate. Some states have more homestead exemptions or homestead protection and some has less. Asset protection using homestead exemption and homestead protection should be part of your estate planning or real estate tax planning.

Florida Homestead Exemption

Florida homestead exemption is very popular because Florida homestead exemption is one of the few states' homestead protection that is unlimited. Find out the limit of the homestead exemption or homestead protection in you state and take advantage of homestead exemption and homestead protection in your state. 

What is homestead protection or homestead exemption?

In most states, the equity in your primary real estate residence is exempt from creditor's claims. Only a few states provide an unlimited exception. So whatever the limit of your homestead protection is, make sure the equity in your home is about the amount of your homestead protection.

For example, if your state homestead protection is $25,000, a creditor cannot force the sale of your home if you have less than $25,000 in equity.

How to obtain homestead protection or homestead exemption?

In some states, you must file a public document to claim your homestead protection. Contact your local county recording office to find out the specific process as well as the homestead protection exceptions.

What if my state does not have a homestead exemption or homestead protection?

If you live in a state without a homestead exemption or homestead protection, a judgement creditor can put your real estate property up for sale at a sheriff's auction to the highest bidder. Usually at a sheriff 's auction real estate properties will sell for much lower than their market value.