If I sell my home, how do I shelter the proceeds?
When you sell or refinance your homesteaded home, you should shelter the proceeds. You have options: One option is to use the proceeds from the sale or refinancing to buy another exempt asset. For example, you might use the protected proceeds from selling your homesteaded home to buy an exempt annuity. Or, you might invest the proceeds in a protective entity, such as a limited partnership, LLC or irrevocable trust. Most homestead law states protect the proceeds from the sale or refinancing of an exempt asset either for a specified time (set by statute), or for a reasonable time (determined by the courts). But for continued protection of the proceeds, you must segregate the exempt proceeds in separate accounts so it can be identified as proceeds from an exempt asset.