Should you put your home into an LLC?

Sometimes people with put their rental property into an LLC. But you should not put your homestead into an LLC.

Attorney Tom Olsen: Here's a text that says, "Should I put my home in an LLC?" I get people on a regular basis that ask me that same question. Should they put their rental property in an LLC, that's a different topic but this question, should I put my at home in an LLC, no, there's no way you'd want to do that. Two things. Number one, it's absolutely protected from creditor claims anyway. That's the reason people are using LLCs but it's not necessary as far as your home because it's already protected from creditor claims. The other reason would be for real estate taxes.

Attorney Chris Merrill: Exactly. Well, you're saying for home settings and the Florida constitution gives the highest protection for creditor claims for your homestead.

Attorney Tom Olsen: For homestead protection from creditors. If you want to get a homestead exemption on your real estate taxes, where they knock $50,000 off the assessed value, that saves you about $750 a year in real estate taxes on your home, you're not going to get that if it's owned by an LLC, it's got to be owned in your individual name.

Attorney Chris Merrill: The real estate taxes, as well as the protection from creditor claims, are two reasons to keep it in your name only and not put your homestead in an LLC.