How Can I Protect My Children's Inheritance Of My Home If I Have Creditors?

 

 

 

Video Summary


How can I protect my home for my children and their inheritance if I have creditors?  Well, under our Florida constitution, your home is protected from creditors.  It's called homestead and that's a different part of our Florida constitution than when you file for homestead exemption, but you have to be a Florida resident and your residence must be less than a half an acre if inside the city limits and less than 160 acres outside a municipality.

 

And if you're a resident of Florida and you pass away, then the property will pass to your children unless direct it to be sold under your will, or you can leave it to your children and your creditors will not have a claim against it even if they have a judgment against you, it will not attach to your homestead property.  The word that's used in the Florida constitution is this exemption from for sale of your creditors of your home in nours or passes through to your children.  So your home is protected from creditors during your lifetime so that you don't have to worry about credit card companies coming in and getting a judgment and taking your home and neither do your children if you even have judgments.

 

There is an exception, of course, in the event that the federal government has a lien, a tax lien, or a judgment against you, they can take your home and you cannot protect it from the claims of the United States of America.  But your home is protected if you go through a bankruptcy, you can exempt out your homestead property and reaffirm your mortgage debt and preserve it; or if it's paid for, you may even be able to keep it out of bankruptcy and be protected from the claims of creditors, and then whenever you pass away, it's not subject to any judgment you have against you when it passes through to your children.  You do have to leave it to your children or their heirs or grandchildren in order for them to get this exemption from the claims of creditors.

 

 

If you have any other questions about your homestead property and your creditors, give me a call at (727) 847-2288.