Education On Point

One-Stop Florida Homestead

Arguably the biggest estate planning issue in Florida is homestead. If you are new to estate planning in Florida, stop, read everything you can about homestead, then proceed cautiously. As easy as people can make homestead sound, it has the ability to screw up the most basic estate plan. The first thing you must realize is homestead is really three different things: creditor protection, restriction on alienation & devise and property tax relief. So if you are new to this, don't forget to address them all in planning.

My goal is to build a One-Stop Florida Homestead reference page. I cannot do it in a day, but I promise to keep improving. If you have any recommendations or suggestions please email me.

Asset Protection and Homestead

The Florida Bar has a CLE course - Asset Protection in Florida. The speakers are fantastic and the book is a must have for Florida estate planners. There are two sections on homestead. Excellent resource.

Amendment 1 Passed

On January 29, 2008 Amendment 1 passed. Go to http://dor.myflorida.com/dor/property/sb4d.html for forms and FAQ.

What will you find?

• Portability Application Form
• Portability Frequently Asked Questions
• Additional Homestead Exemption Frequently Asked Questions
• 10% Assessment Limitation Frequently Asked Questions

Stay informed!

Homestead Descent Examples

Sometimes the best way to understand a complicated issue is with examples. Bruce Stone, a prominent estate planning attorney in Florida (more about Mr. Stone here), presented "What Every Georgia Trusts and Estates Practitioner Needs To Know About Florida Law" and included some excellent homestead descent examples in his materials. He was kind enough to let us post them here. Test your knowledge of homestead descent with these great examples.

Great Florida Homestead Resources

Some great Florida Homestead resources are:

The Florida Bar Journal type in homestead and start reading. Start with the Homestead Made Easy articles by Rohan Kelley and Tae Tanya Kelley (now Tae Kelley Bronner).

Administration of Trusts in Florida, The Florida Bar Continuing Legal Education, LexisNexis - specifically chapter 14. (unlike other resources listed here - this one you have to buy!)

Practice Under Florida Probate Code, The Florida Bar Continuing Legal Education, LexisNexis - specifically chapter 19. (unlike other resources listed here - this one you have to buy!)

Florida Department of Revenue - Florida Property Tax Exemption information

An Analysis of Save Our Homes and Truth in Millage Pursuant to Chapter 2006-311, L.O.F.

Contact list for Property Appraisers in Florida (confirm homestead status)

ABA-PTL The Estate Planner's and Administrator's Discussion listserv search the archives

Constitution & Statutes

Here are links to the Florida Constitution and Florida Statutes regarding homestead. Please let me know if adding any links would be helpful.

1.       Homestead is defined in Article VII, Sec 6 of the Florida Constitution. See FL Stat. 196.012 (13) which defines “Real estate used and owned as homestead” means real property to the extent provided in s. 6(a), Art. VII of the State Constitution…”

2.       Ad Valorem Taxes

a.                   Save Our Homes – which limits the increase in assessed value to lesser of 3% or change in the CPI – Article VII, Sec 4(c) of the Florida Constitution & FL Statue 193.155 (also change of ownership rules which are triggering events). If you do not realize the impact of this for Florida residence, do some research. This is huge.

b.                   Homestead Exemptions – FL Statue 196.031 & Article VII, Sec 6 of the Florida Constitution

3.       Creditor Protection – Article X, Sec 4 (a) & (b) of the Florida Constitution. Homestead is limited to ½ acre within a municipality and 160 outside a municipality.

4.       Alienation & Devise – Article X, Section 4(c) of the Florida Constitution & FL Statue 732.4015. If there is a surviving spouse or minor child you cannot devise your homestead. If no minor child, the homestead can be devised to your spouse.