Homestead protection protects the value of your home from creditors. Depending
on which state you reside in, homestead law may partially or fully protect
your home from creditors. Each state has its own specific provisions regarding
requirements and degrees of protection. Although each states homestead
law varies greatly in how much home equity is protected, homestead laws
in all instances only apply to the primary residence which you own and occupy.
Some of the specific criteria or restrictions which commonly apply include
lot size, acreage, and rural/urban designations. An example of this would
be Florida, which protects an unlimited dollar value of home equity up
to 160 acres rural or 1/2 acre urban. If you do not fit within those parameters,
you may qualify for “some” protection but not an unlimited
dollar amount.
The States which provide unlimited homestead protection within their respective
limits include:
- Arkansas
- District of Columbia
- Florida
- Iowa
- Kansas
- Oklahoma
- South Dakota
- Texas
- Puerto Rico
Most states do not offer unlimited homestead protection. To view specific
exemption details by state
click here
The homestead exemption should be one of the first steps in your Asset
Protection strategy, as your primary home is often one of your most valuable
assets. Furthermore, understanding your states homestead laws can often
provide you with a roadmap in deciding whether or not to fully pay off
your mortgage. For example, if your states homestead law only offers $50,000
of protection, you may want to keep a mortgage on the property to decrease
the exposed equity. If you want to speak with an attorney for expert advice
on this subject, please contact The Presser Law Firm P.A. for a complimentary
preliminary consultation.
The Presser Law Firm P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(800) 999-9992 or e-mail Info@AssetProtectionAttorneys.com
