What is a Homestead Exemption?
A homestead exemption is a mechanism that protects your home and adjoining land from being claimed by creditors, even if you do not have enough other assets to satisfy their claims. The main purpose of the homestead exemption is to ensure that a debtor and his family have some means of support and do not become dependant on the state. Who Can Claim a Homestead Exemption?
The homestead exemption applies as long as the home is being used as the principal place of residence by the head of the household. Most states also allow a homestead exemption for surviving spouses and minor children when the head of the household dies. How Much is a Homestead Exemption Worth?
The amount of the value of your home that is protected by the homestead exemption is determined by, and varies according to, state law. The value of the homestead usually starts at a minimum level for a head of the household who lives alone. Its value can increase based on a number of factors, including: - The number of dependants in the household
- The age of the head of the household
- Whether the head of the household is disabled
- The head of the household¿s income
What Does a Homestead Exemption Not Do?
The homestead exemption does not protect a person¿s home from any of the following: Do I Need a Real Property Attorney?
If you are facing bankruptcy or have numerous creditors¿ claims on your assets, speak to a real property attorney about how a homestead exemption can protect your investment in your home. |
