What are Florida's two types of homestead exemptions?

Attorney Tom Olsen: Chrissy, in our show today, both types of homestead exemption have come up to us in calls and questions. This term homestead exemption, the words are exactly the same but there are two completely different definitions of these things or two situations where they both apply. One is what we just talked about in the homestead exemption given to us by our Florida constitution, which states that here in the state of Florida, no creditor may take away the home of an individual. Doctors, hospitals, credit cards, automobile accidents, but in most situations that also applies if you file bankruptcy.

It also applies if you've gone to a nursing home and have to get on Medicaid, where the government pays for your nursing home. All situations where you get to keep your home here in the state of Florida.

Attorney Chris Merrill: Exactly, and that is not the situation in all states.

Attorney Tom Olsen: Yes. That's our Florida constitution homestead exemption. The other one has to do with real estate taxes. If it's your home and you live there and you've applied for a homestead exemption and is granted to you, the property appraiser's office will reduce the assessed value of the property by $50,000 every year. That's going to save you about $750 a year in real estate taxes.

Attorney Chris Merrill: Exactly.

Attorney Tom Olsen: Yes. Now, one thing you should know about homestead exemption for real estate tax savings purposes is that you only get one here in the state of Florida. Chrissy, over the years, I've had people that say, "Tom, hey, we're a married couple, we own a home in Orlando and we've got a condo over the beach," and here in Orlando, the husband claims homestead exemption and the condo, wife claims homestead exemption. No, no, no. You only get one. You only get one in the US because there are people that have homestead exemptions on their home, their vacation home and I don't know, call it North Carolina, for example, where they're claiming homestead exemption for tax savings purposes.

Guess what, the states are cross-checking their tax rolls here and catching people.

Attorney Chris Merrill: Exactly. Tom, we also have a lot of snowbirds, so they do have homes in their respective states, as well as a home here in Florida and they will live here part-time.