The Third DCA affirmed. Fla. 2002), a case decided more than 100 years after Drucker, the debtor purchased a condominium on August 31, 2001, and began moving property into the condominium in September 2001. If you missed it, you should read that article before reading this one. Fla. 1994), the court held that a motor coach qualified as a homestead since it was the debtor’s permanent residence and was permanently hooked up to utilities. In addition to persons … Similarly, a bankruptcy court held that, after a separation by two spouses, each would be able to claim a homestead in a home even though the net effect would be to exempt two homesteads where both had filed separate bankruptcies.17. Fla. 2000), citing. Florida law provides for lower property tax assessments on homestead property. S.D. , 252 B.R. See also In re Lusiak , 247 B.R. The title to the property passes instantly at death pursuant to the will (if the estate is testate) or pursuant to the intestacy statute (if the estate is intestate) to the beneficiary or the heir. If you conclude that the property is not subject either to the claims of creditors or to probate, then go ahead and do just that. For example, in 1991, The New York Times reported that Bowie Kuhn, the former Major League Baseball Commissioner, had sold his $1.2 million New Jersey home and within weeks had bought a similar estate in Florida to shield his assets before then filing for bankruptcy.3 These and many other articles express concern that debtors can avoid creditors by moving to Florida, purchasing a new home and establishing residency. It is my practice to report the dece dent’s homestead on which the exemption has inured to a qualified person or persons (Scenarios 1, 2, and 3) in the homestead subdivision of the Bar form, and to report nonexempt homestead (Scenarios 4 and 4A) in the nonhomestead subdivision. There are basically three questions that need to be considered with regard to the probate administration of the home. 979 (Bankr. If you qualify, you can reduce the assessed value of your homestead up to $50,000. [P]roceeds of the sale are not exempt if they are not reinvested in another homestead in a reasonable time or if they are held for the general purpose of the vendor.”), , 247 B.R. As such, we discussed the policy behind the exemption, the limits on its use, namely the types of residences which may qualify as homestead, the size of limitations of the real property on which the homestead is situated, and, finally, the manner in which residences must be owned in order to qualify for homestead. This is true only if it is devised or passes by intestate succession to those persons who are intestate heirs, as defined in F.S. §733.817(l)(d)) is the only one in the Florida Probate Code that clearly recognizes and mentions the distinction between a decedent’s homestead where the exemption inures to a qualified person and a decedent’s homestead where such exemption does not inure. 1997) (“change of residence is accomplished and becomes effective when there is a good faith intention to establish it, coupled with the actual physical move to a new residence, as evidenced by positive overt acts”). 18 Vandiver v. Vincent, 139 So. (Note: if the apartment had been a cooperative apartment, it could not be the decedent’s homestead for this purpose because it would not meet one of the requirements of art. S.D. Under the Florida Constitution, every Florida homeowner can receive a homestead exemption up to $50,000. Const.). The Florida Constitution provides this tax -saving exemption on the first and third $25,000 of the assessed value of an owner/occupied residence. Note, however, that when the debtor owns the land upon which a mobile home is located, §222.05 is not applicable, and both the land and mobile home qualify as homestead.22, Decisions are in conflict as to whether motorboats can qualify for homestead protection. Fla. 1996), the court noted the following do not necessarily constitute abandonment: 1) mere absence from the homestead for financial reasons; 2) posting a “for sale” or offering the property for sale; or 3) failing to maintain the property for extended periods.32 Similarly, homestead status is not lost when a debtor leaves the home with no intention of returning but has a good faith intent to reinvest the proceeds of a future sale of the house in a new homestead.33 However, in Dep’t of Revenue ex rel. "Property Tax Exemptions and Additional Benefits." M.D. and the University of Miami School of Law where he earned a masters in estate planning. 361, 363 (Bankr. Fla. 1995). 2d 708 (Fla. 33 La Croix, 137 So. F.S. If the property is not subject to probate, how could the PR sell it? 2d 107 (Fla. 1976). Does anyone suggest that a provision in the decedent’s will that “I direct my homestead be sold and the proceeds be applied first to the payment of my debts, and any amount then remaining shall then be paid to my son” has no validity? Thus, assuming the size of the homestead does not exceed 160 acres, homeowners need not be concerned whether they will lose their homestead protection if they live in a home that exceeds one-half acre within an unincorporated area that later becomes a municipality. F.S. if passed, will supersede this analysis and replace it with a 40-month residency requirement prior to filing for bankruptcy in order to obtain homestead benefits of the new domicile state. . In summary, we learned that the “homestead” is the homestead of the decedent, not of the estate. A) A “devise” is a disposition of real (or personal) property by will. Fla. 1993) (reversed on other grounds). Otherwise, the trustee was authorized to sell the homestead (as set forth in, ) and “the Court will apportion the proceeds accordingly.”. If you are looking for how to file for homestead exemption in Brevard County, keep reading. 2d 340, 342 (Fla. 1982), reasoned that “unless the debtor is issued such permanent status, the alien debtor cannot legally formulate the requisite intent to make the house the family’s permanent residence, regardless of the debtor’s subjective intention to remain indefinitely.” Accordingly, in In re Boone, 134 B.R. The Sarasota County, FL is not responsible for the content of external sites. Also, the real property attorneys (dirt lawyers) and the title companies are even more confused. 1997) (“change of residence is accomplished and becomes effective when there is a good faith intention to establish it, coupled with the actual physical move to a new residence, as evidenced by positive overt acts”). See TN 2.06.01.”, Arnold’s position, however, is not expressed so much as one of legal certainty, but rather one of prudence and caution (the hallmark of the dirt lawyer and the antithesis of the successful probate lawyer). 124, 125 (Bankr. The decedent is not survived by a spouse or a minor child and the property is devised to those who would have been intestate heirs of the decedent. 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