By Laurie E. Ohall, Florida Board-certified Elder Law Attorney
If you own a home in Florida, you have probably heard the term “homestead” in connection with your property taxes. What many homeowners do not realize is that Florida homestead affects much more than taxes. It also provides valuable creditor protection and determines how your home can pass to your loved ones after your death. Understanding these rules can help your family avoid unnecessary complications.
Florida homestead has three primary benefits. First, it provides a property tax exemption and the Save Our Homes assessment cap, which limits annual increases in your home’s assessed value. Second, it offers strong protection from most creditors, making your primary residence one of your most protected assets. Third, it imposes special inheritance rules that can override what you have written in your will.
These inheritance restrictions often surprise homeowners. If you are survived by a spouse or a minor child, Florida law limits your ability to leave your homestead to whomever you choose. If the property is not properly planned for, the law generally gives the surviving spouse either a life estate in the home, with the remainder passing to the children, or the option to elect a one-half interest in the property. These default rules may not reflect your wishes and can create conflict between a surviving spouse and children.
Fortunately, careful estate planning provides greater flexibility. In some situations, a spouse may waive certain homestead rights through a valid prenuptial or postnuptial agreement. A properly drafted trust can also allow your home to pass outside of probate while preserving important homestead protections. However, these strategies must be implemented correctly to avoid unintended consequences.
Because Florida homestead affects taxes, creditor protection and inheritance, it should be a central part of every estate plan — not an afterthought. Reviewing how your home is titled and how it will pass at your death can help ensure your wishes are carried out while preserving the valuable protections Florida law provides.
A brief conversation with an experienced estate planning attorney can help determine whether your current plan fully protects your home and your family. Please call the Law Offices of Laurie E. Ohall at 813-438-8503 to talk through your estate planning.
