Florida’s Homestead Exemption in Palm Beach County

Many people are familiar with the term “homestead exemption” in the context of the first $50,000.00 of value of their home to be exempt, or free, of property tax. However, the term “exemption” means property that has special status, and those exemptions, or protected assets, involve much more than real property taxes.

Property that is protected from creditors—Even without bankruptcy:

Consumers who owe money are still entitled to the protections afforded by law, both as to the method of collection and property that cannot be taken to satisfy a debt. The following assets are among many types of property protected under Florida law from being taken to satisfy an unsecured debt:

a. A person’s home where he or she actually lives, no matter how much equity there may be in the property, and regardless of whether the person is single or has dependents; Florida statutes and case law construe a residence to be a mobile home, or a houseboat [but the property may be taken if mortgage payments, taxes, or mechanic liens are not paid*];

b. The wages, commissions, or salary of a head of a family [someone who provides more than 50% of the support for a dependent, and that person can be an ADULT child, a parent, sibling or even a non-relative, and that person need not live with the debtor];

c. $1,000.00 of personal property if the debtor owns a home or $5,000.00 if the person doesn’t own a home or claim the benefit of homestead ownership; personal property is anything that is not land or an improvement to land, so that is cash, money in the bank, furniture, jewelry, clothing, investment accounts, cars, animals, debts owed to the person, and so forth;

d. $5,000.00 equity [value above and beyond what might be owed]in a single motor vehicle [van, motorcycle, motor home];

e. Cash surrender value of life insurance policies insuring the life of the debtor;

f. Annuity benefits;

g. IRA’s, regardless of the amount*;

h. 401k’s, regardless of the amount*;

i. Pensions;

j. Medically prescribed health equipment;

k. College Education funds in a §529 plan, such as the Florida Prepaid College Plan or the Florida Prepaid Savings Plan;

l. Health Savings Accounts, regardless of the amount*;

m. Veteran’s Benefits;

n. Disability Benefits;

o. Social Security Benefits;

p. Pre-Need Funeral Payments;

q. Unemployment Benefits;

r. Worker’s Compensation Benefits;

s. and certain others under State and/or Federal law.

*Exceptions exist when the property is obtained as a result of fraud or fraudulent conveyance.

Often, individuals do not have assets other than the items listed above. No one can be imprisoned for the failure to pay a bill. A creditor has the right to bring a lawsuit and obtain a Final Judgment, at which time the law permits a creditor to make inquiry into the debtor’s assets, financial records, and the like, but a creditor cannot put a judgment lien upon an individual’s homestead [Article X Section 4 of the Florida Constitution].

Special circumstances may exist, such as when the debtor is the head of a family, but the creditor is someone seeking to collect past due alimony or child support, or someone who owes money for student loans or taxes.

The State and Federal Laws are here to protect you and your rights. Don’t delay taking action; time is not on your side! Call Mr. Lampert now to schedule your free consultation.