In a case decided a few years ago by the Federal Bankruptcy Court for the Middle District of Florida, the Judgedetermined that the Florida Constitutional creditor exemption for a homestead residence does not apply to a homestead residence held in a Revocable Trust. The reasoning behind the ruling is that a Revocable Trust is not considered a natural person as defined in the Constitution and, therefore, does not meet the requirement under the Constitution that a homestead be owned by a natural person. Similarly, the ruling may be applied to any Florida resident whose Revocable Trust (or any other trust) or other entity owns their homestead residence.

While this ruling does not apply to the annual Homestead property tax exemption, it is important that anyone owning their principal Florida residence (their "homestead") in their Revocable Trust, or any other trust, review this and other related estate planning issues immediately.

In most cases, this significant problem can be corrected for as little as $300 and Cox & Nici will be glad to assist you.

Learn more on our website...