Florida Homestead Explained: What Every Homeowner Needs to Know

Homestead law is one of the more complex areas in Florida estate planning.  This blog post will provide a general homestead overview, but it will not cover the full spectrum of the rules or the many exceptions. For those of you planning to file for your homestead exemption, please be advised that this task must be completed by March 2, 2026.

            Your primary residence in Florida may be considered your homestead.  How your residence is owned—such as tenants by the entireties with your spouse, in a revocable or irrevocable trust, or in an entity like an LLC— can affect whether and to what extent the homestead rules apply, as well as whether your spouse has waived any of the homestead protections in a marital agreement or deed.  There are three general concepts to understand:

1. Protection from Creditors. The Florida Constitution generally exempts your homestead from a forced sale or the attachment of a judgment or lien.  However, certain creditors (such as the federal government and the lender if you have mortgaged your homestead) and certain liens (such as unpaid property taxes) may reach, or attach to, your homestead.  While the homestead protection is unlimited in value, there are size constraints: the protection is limited to (a) up to one-half acre of property located inside a municipality and (b) up to 160 acres of property located outside of a municipality.  The homestead protection from creditors is self-executing upon moving into your primary residence, meaning you do not need to apply anywhere for this protection.

2. Property Tax Exemption. Florida offers valuable property tax benefits for your homestead.  First, you can typically receive a $50,000 reduction of your homestead’s assessed value for property tax purposes.  Second, and more importantly, is the Save Our Homes Cap, which generally limits annual increases of the homestead’s assessed value to 3%.  Unlike the automatic asset protection benefits discussed above, you need to file for the homestead exemption with your local property appraiser’s office. 

3. Devise Restrictions. While the two concepts above are typically viewed as benefits, the following devise restrictions sometimes can feel like a burden.  The Florida Constitution imposes restrictions on your ability to transfer your homestead if you are married or have minor children.  This reflects a public policy that your surviving spouse and minor children should not become homeless upon your death.  While you are alive, your spouse generally must join in the transfer of your homestead during life.  At death, the rules become complicated and are not always intuitive.  Below is a summary of these rules:
   1. If you are survived by a spouse and no descendants, your spouse will receive the homestead.
   2. If you are survived by a spouse and at least one minor child, your spouse will receive a life estate in the homestead, and your descendants will receive the remainder interest. The surviving spouse may elect in lieu of the life estate to instead receive a 50% interest as a tenant-in-common with the descendants.
   3. If you are survived by a spouse and at least one descendant (but not a minor child), you may devise your homestead to your spouse, but if you do not, your spouse will receive a life estate in the homestead, and your descendants will receive the remainder interest. The surviving spouse may elect in lieu of the life estate to instead receive a 50% interest as a tenant-in-common with the descendants.
   4. If you are survived by at least one minor child (but no spouse), your descendants will receive the homestead.
   5. If you are not survived by a spouse or any minor children, you are free to devise the homestead (even if you are survived by adult descendants).

If you have any homestead questions, please contact the estate and tax planners at Comiter Singer.