Will I lose my homestead protection from creditors on incorporation?
HOMESTEAD DEBT PROTECTION
“Will I lose my homestead protection from creditors on incorporation?
No! Under Article X, Section 4 of the Florida Constitution properties are exempt “from forced sale under process of any court, and no judgment, decree or execution shall be a lien thereon, except for the payment of taxes and assessments, thereon, obligations contracted for the purchase, improvement or repair thereof, or obligations contracted for house, field or other labor performed on the realty, the following property owned by a natural person:
1. a homestead, if located outside a municipality, to the extent of one hundred sixty acres of contiguous land and improvements thereon, which shall not be reduced without the owner’s consent by reason of subsequent inclusion in a municipality; or if located within a municipality, to the extent of one-half acre of contiguous land, upon which the exemption shall be limited to the residence of the owner or the owner’s family”
It goes on to state that the exemptions carry on to the surviving spouse or heirs of owners including minor children.
Note: this protection continues after incorporation on the full property until it is sold or the protection has been alienated by choice. After a property is sold, it loses the protection on all but 1/2 acre. Therefore, all properties that are homesteads on the date of incorporation and have not alienated their rights, will continue to enjoy the protections of Article X, Section 4 unless they alienate this protection through mortgage, sale, transfer etc.
The Constitutional homestead provision can be found here http://www.leg.state.fl.us/statutes/index.cfm?submenu=3#A10S04
An information bullet on this topic can also be found here https://www.flta.org/Resources/Documents/Continuing%20Ed/Webinar%20Materials/Homestead%20III/Article%20X%20_%20Intestacy%20Statute.pdf”
FLORIDA’S UNLIMITED HOMESTEAD EXEMPTION DOES HAVE SOME LIMITS, PART I
Will I lose my “Save Our Homes” cap on incorporation?
No! The Save Our Homes protection continues after incorporation and incorporation does not affect the capped value protected by State Law.
The Law can be found here
Additional information can be found at the Florida Revenue site here and under SaveOurHomes here