United States of America
Land Trust
Land Trusts Made Simple
Land Trusts are sometimes referred to as Florida or Illinois "type" trusts because of their favorable state laws and years of case history. Land Trusts are designed to hold title to real property and real property assets, including real estate options, contracts and mortgages. Technically, a land trust is a form of intervivos trust. Intervivos means "among or between the living" and hence the term "living trust". Land Trust assets are considered personal property to the beneficiary, which is not subject to judgment creditors in some states. However, existing court precedence have held that, "If a settlor has the right to revoke a trust, all of the assets are treated as owned by the settlor and is ignored for creditor purposes, just as it is ignored for tax purposes." Land Trusts can be revocable or irrevocable. If created as revocable, the Land Trust serves primarily as a means of lawful tax avoidance and an excellent veil of anonymity. Even if a judge were to call you into a debtor's examination requiring you to provide ownership information under criminal penalty, wherein you may not plead your 5th amendment rights, if the Land Trust was properly linked to an entity (such as a Limited Liability Company), the combined structure can provide outstanding asset protection.
Enter the category for this item: Land Trust Fundamentals
Enter the name for this tabbed section: Purpose of a Land Trust
Primary purposes for using a Land Trust include:
- Anonymity
- Ease of Transferring Title
- Avoiding a Due on Sale Clause
- Avoiding Probate
- Assuming Non-Assumable Mortgages
- Avoiding Reassessment Fees
- Avoiding Transfer Taxes
- Ease of Transferring Title
- Avoiding a Due on Sale Clause
- Avoiding Probate
- Assuming Non-Assumable Mortgages
- Avoiding Reassessment Fees
- Avoiding Transfer Taxes
Enter the name for this tabbed section: Reassessment Fees
Reassessment fees may occur anytime there is a change in property ownership. In order to avoid reassessment fees when using a land trust, the percentage of ownership must remain unchanged and be the same the day after transfer of title as it was the day before. This includes continuity of ownership throughout the entities involved with the transfer. Should the ownership in the entities involved in the transfer differ from that of the property, you may be subject to reassessment fees. For people living in California, Proposition 13 allows immediate family members (father, mother, son or daughter) to be added to the title without invoking a change of ownership.
Enter the name for this tabbed section: Due on Sale Clause
Land trusts help avoid a due-on-sale clause invoked by a lender (bank). A due on sale clause is when a lender intends to accelerate your loan payments by calling the loan due. Banks loan money to you for the purchase of a property, should you quit claim deed that property (transfer ownership) to an entity, even if you are sole owner of that entity (Corporation or LLC), that is a transfer to a different person and lenders consider that a sale. By utilizing a land trust you take advantage of the Garn - St. Germain Depository Institutions Act, 1982 
and avoid the invocation of a due on sale clause.
and avoid the invocation of a due on sale clause.United States Public Laws
97th Congress - Second Session Convening January 25, 1982
PL 97-320 (HR 6267) October 15, 1982
Part C Preemption of Due on Sale Prohibitions
Due On Sale Clauses
Sec. 341. // 12 USC 1701j-3. //
(d) A lender may not exercise its option pursuant to a due-on-sale clause upon--,
(8) a transfer into an intervivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property;
The Garn - St. Germain Act permits the transfer of a property into a land trust without the lender's ability to invoke the due on sale clause. Land trust agreements are private documents, only the filing of title made with the county recorder's office is public. The land trust document itself remains private as no public record of the agreement is ever filed. This provides excellent anonymity for both the trustee and beneficiary.
Enter the name for this tabbed section: Structuring
In states such as California where the franchise tax board charges $800 per year, per entity (including single-member LLC's), land trusts can be utilized to help reduce costs as California does not charge annual renewal fees to a land trust. If the assets in a property are substantive, proper asset protection requires the formation of a separate Nevada multi-member LLC to act as the beneficial interest holder of the land trust. Should one entity act as the beneficial interest holder for multiple land trusts, all of the properties titled to that entity are at risk to seizure by a creditor in the event of an inside lawsuit.
Enter the name for this tabbed section: Flow-Chart
Enter the category for this item: Protecting Your Primary Place of Residence
Enter the name for this tabbed section: 3 Ways
There are 3 primary ways in which to protect the equity in your home without risking the loss of your capital gains exclusion:
1.) Encumbrance
2.) Nevada "Single-Member" Limited Liability Company (LLC)
3.) Homestead Exemption
1.) Encumbrance
2.) Nevada "Single-Member" Limited Liability Company (LLC)
3.) Homestead Exemption
Enter the name for this tabbed section: Capital Gains Exclusion
The capital gains exclusion for a single person is $250,000 and for a married couple it is $500,000. The capital gains exclusion translates in up to $75,000 in tax savings, so be aware of the tax consequences when choosing the type of trust or entity to protect your home (principle residence).
In order to qualify for the capital gains exclusion on your principle residence, ownership must:
1.) Be held directly in your name or in the name of a qualifying trust or certain single-owner entities;
2.) You must have resided in the property for a cumulative of 2 out of the 5 years prior to selling.
When you transfer the property into a non-qualifying trust (such as a land trust utilizing an entity to hold the beneficial interests of the trust) or a non-qualifying single-owner entity (such as a corporation, "multi-member" limited liability company or limited partnership), you no longer hold ownership and after 3 years time may be at risk of losing your capital gains exclusion.
Although many (grantor) land trusts are afforded the capital gains exclusion under Internal Revenue Code (IRC) Sections 1.121 and 645(b)(1), as well as Treasury Regulation 301.7701-3 and Treasury Decision 9030, not all land trusts are drafted alike. Some land trusts may be considered a non-qualifying trust and prevent an individual from taking advantage of the capital gains exclusion.
In order to qualify for the capital gains exclusion on your principle residence, ownership must:
1.) Be held directly in your name or in the name of a qualifying trust or certain single-owner entities;
2.) You must have resided in the property for a cumulative of 2 out of the 5 years prior to selling.
When you transfer the property into a non-qualifying trust (such as a land trust utilizing an entity to hold the beneficial interests of the trust) or a non-qualifying single-owner entity (such as a corporation, "multi-member" limited liability company or limited partnership), you no longer hold ownership and after 3 years time may be at risk of losing your capital gains exclusion.
Although many (grantor) land trusts are afforded the capital gains exclusion under Internal Revenue Code (IRC) Sections 1.121 and 645(b)(1), as well as Treasury Regulation 301.7701-3 and Treasury Decision 9030, not all land trusts are drafted alike. Some land trusts may be considered a non-qualifying trust and prevent an individual from taking advantage of the capital gains exclusion.
Title 26 - Department of the Treasury Code of Regulations
Chapter 1 - Internal Revenue Service
SubChapter A - Income Tax
Part 1 - Income Taxes
Section 1.121 - Index
Exclusion of gain from sale or exchange of a principal residence.--
(3) Ownership.--
(i) Trusts.-- If a residence is owned by a trust, for the period that a taxpayer is treated under section 671 through 679 (relating to the treatment of grantors and others as substantial owners) as the owner of the trust or the portion of the trust that includes the residence, the taxpayer will be treated as owning the residence for purposes of satisfying the 2-year ownership requirement of section 121, and the sale or exchange by the trust will be treated as if made by the taxpayer. (See §672 below)
(ii) Certain Single Owner Entities.-- If a residence is owned by an eligible entity (within the meaning of §301.7701-(3)a of this chapter) that has a single owner and is disregarded for federal tax purposes as an entity separate from its owner under §301.7701-(3)a of this chapter, the owner will be treated as owning the residence for purposes of satisfying the 2-year ownership requirement of section 121, and the sale or exchange by the entity will be treated as if made by the owner.
Title 26 --> Chapter 1 --> SubChapter J --> Part 1 --> SubPart E --> §672
§672
(f) Subpart not to result in foreign ownership
(2) Exceptions
(A) Certain revocable and irrevocable trusts Paragraph (1) shall not apply to any portion of a trust if --
(i) the power to revest absolutely in the grantor title to the trust property to which such portions is attributable is exercised solely by the grantor without the approval or consent of any other person or with the consent of a related or subordinate party who is subservient to the grantor. (Emphasis Added)
Enter the name for this tabbed section: 1.) Encumbrance
Encumbrances are bank loans which "encumber" a home with debt. If your home has no equity in it, then there is nothing available for a judgement creditor to seize. Mortgages may be used as a proactive means of asset protection, provided the loans were "activated" or used prior to any knowledge of a summons and complaint (lawsuit). A traditional second mortgage has immense case law to substantiate defending against creditors. The bank is recognized as having the prior lien and is considered by the courts to be "first in time, first in line". Disadvantages to this strategy include the homeowner accruing interest and making payments on the full amount of money borrowed from the lender.
A Home Equity Line Of Credit (HELOC) is a collateralized loan, or line of credit, which allows a homeowner to draw upon the equity in their home as needed. In the event that the homeowner dishonors the note by failing to repay, the lender may foreclose on the property just as they would with a traditional mortgage. Lending institutions will normally loan up to 80% of the available equity in a primary residence. The advantage to a HELOC is that the homeowner need only accrue interest and make payment on the amount of money borrowed at any one given point in time. Disadvantages include a potential creditor trying to freeze the remaining funds or available credit after a lawsuit has been initiated. After which time, if the homeowner successfully withdraws more money (equity) from the home, it is a matter of judicial determination if such a withdrawal is considered a fraudulent conveyance. Moreover, upon learning of the lawsuit, the lender may simply freeze the account out of self interest.
A Home Equity Line Of Credit (HELOC) is a collateralized loan, or line of credit, which allows a homeowner to draw upon the equity in their home as needed. In the event that the homeowner dishonors the note by failing to repay, the lender may foreclose on the property just as they would with a traditional mortgage. Lending institutions will normally loan up to 80% of the available equity in a primary residence. The advantage to a HELOC is that the homeowner need only accrue interest and make payment on the amount of money borrowed at any one given point in time. Disadvantages include a potential creditor trying to freeze the remaining funds or available credit after a lawsuit has been initiated. After which time, if the homeowner successfully withdraws more money (equity) from the home, it is a matter of judicial determination if such a withdrawal is considered a fraudulent conveyance. Moreover, upon learning of the lawsuit, the lender may simply freeze the account out of self interest.
Enter the name for this tabbed section: 2.) Nevada LLC
Nevada, in-particular, requires a court to rule on the charging order based on state statute and not judicial interpretation. And Nevada "single-member" limited liability companies are granted the same charging order protection as a "multi-member" LLC under Nevada state statute.
According to the regulations of the Internal Revenue Service (IRS) Federal Registry on Single-Owner Entities, 2002 a single-member LLC is disregarded by the IRS for tax purposes and will not cause a homeowner to lose their capital gains tax exclusion.
According to the regulations of the Internal Revenue Service (IRS) Federal Registry on Single-Owner Entities, 2002
a single-member LLC is disregarded by the IRS for tax purposes and will not cause a homeowner to lose their capital gains tax exclusion.Department of the Treasury
Internal Revenue Service
Federal Register
Volume 67, Number 247
Tuesday, December 24, 2002
Rules and Regulations
Explanation and Summary of Comments
Section 3. Ownership by Trusts
“The final regulations adopt these suggestions and provide that, if a residence is held by a (living) trust, a taxpayer is treated as the owner and the seller of the residence during the period that the taxpayer is treated as the owner of the trust or the portion of the trust that includes the residence under §671 and §679. The regulations provide similar treatment for certain single-owner entities.”
Residents of foreign states such as California may take advantage of Nevada law by transferring their primary residence into a Nevada single-member LLC without the California Corporations Code, Section 17001 Limited Liability Companies considering the LLC to be conducting business within its borders. (Check with the laws of your resident state.)
California Corporations Code
(Limited Liability Companies) Section 17001 (ap)
(2)Without excluding other activities which may not be considered to be transacting intrastate business, a foreign limited liability company shall not be considered to be transacting intrastate business within the meaning of this subdivision solely by reason of carrying on this state any one or more of the following activities:
(B) Holding meetings of its managers or members or carrying on any other activities concerning its internal affairs.
(C) Maintaining bank accounts.
(G) Creating or acquiring evidences of debt or mortgages, liens, or security interests in real or personal property.
Enter the name for this tabbed section: 3.) Homestead Exemption
A State does not want a family to be destitute and without the necessities of food, clothing and shelter. States are entitled to grant protection to a family for their primary residence as a "stead" and hence the term, homestead. There are no state homestead exemptions in Maryland, New Jersey and Pennsylvania, whereas Florida, Iowa, Kansas, Oklahoma and Texas have an unlimited homestead allowance. In addition to personal and corporate state income taxes, it may be wise to consider the state homestead allowances when determining where to live.
Alabama [Section 6-10-2]
The homestead exemption limit in Alabama is $5,000 for real property. The property may not exceed 160 acres. A couple may double these amounts.
Alaska [Section 09.38.010]
The Homestead exemption limit in Alaska is $67,500.
Arizona [Statute 33-1101]
The homestead exemption in Arizona is $150,000. The sale proceeds are exempt for 18 months after the sale.
Arkansas [State Statute 16-66-210 and Federal Statute 16-66-218]
The Arkansas homestead exemption is classified into two types of homesteads: rural and urban. A debtor may only choose one type.
State Homestead Exemption: The homestead outside any city, town, or village, owned and occupied as a residence, shall consist of no more than one hundred sixty (160) acres of land, with the improvements thereon, to be selected by the owner. The homestead shall not exceed in value the sum of twenty-five hundred dollars ($2,500), but, in no event shall the homestead be reduced to less than eighty (80) acres, without regard to value.
Federal Homestead Exemption: Real or personal property if it is being used as a residence, is exempt. The homestead exemption limit for singles is $800 and $1,250 for couples.
California [Statute 704-730]
The homestead exemption limit is $50,000 in California for a single person, $75,000 for a couple, $150,000 if 65 or older, or physically or mentally disabled, $150,000 if 55 or older, and are single and earn under $15,000, or are married and earn under $20,000.
Colorado [Statutes 38-41-201 and 38-41-201.6]
The Colorado homestead exemption is $45,000, if the residence is occupied.
Connecticut [Section 52-352b(t)]
The homestead exemption limit is $75,000.
Delaware [Section 10-4914]
Delaware does limit the total amount in exemptions one can claim. A single person may exempt no more than $5,000 total in all exemptions and husband & wife may exempt no more than $10,000 total.
District of Columbia [Title 11, Chapter 5, Sub-Chapter II, Section 522]
The debtor's aggregate interest in real property used as the residence of the debtor, or property that the debtor or a dependent of the debtor in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or dependent of the debtor, is exempt. Debtors may choose from the state list of exemptions, or the federal list of exemptions. The federal list does allow for a homestead exemption.
Florida [Sections 222.01 and 222.02]
The Florida homestead exemption is mandated by state Constitution. The dollar value exemption is unlimited. The exemption is limited to a half acre tract within a city and one hundred and sixty contiguous acres, elsewhere. Property held in tenancy by the entirety may be exempt against debts owed by one spouse. The US Court of Appeals recently held that the exemption will apply even if the owner acquired the property or enlarged it, with the intent to defraud creditors.
Georgia [Section 44-13-100(A)(1)]
Real property is exempt up to $10,000. A couple may double this amount.
Hawaii [Section 246-26]
The Hawaii homestead exemption is $12,000. Those who are the head of household or individuals 60 years of age or over but not 70 years of age or over get 2.0 multiple or $24,000 exemption, and individuals who are 70 years of age or over get a 2.5 multiple of the $12,000 exemption or $30,000. The property must not exceed one acre. The sale proceeds of the homestead may be exempt for up to one year after the sale.
Idaho [Statutes 55-1001, 55-1002, 55-1003]
The homestead exemption limit in Idaho is $50,000 for real property.
Illinois [Statute 735-5, Section 12-901]
Illinois prohibits residents from using the federal bankruptcy exemptions, unless directed by Illinois law. The homestead exemption in Illinois is limited to $7,500. Additionally, the sale proceeds are exempt for one year from the sale of the property . A couple may double the homestead exemption.
Indiana [Statute 34-55-10]
The homestead exemption limit in Indiana is $7,500. The homestead plus any personal property may not exceed $10,000.
Iowa [Sections 499A.18, 561.16, 561.2]
The homestead exemption limit in Iowa is unlimited. The property may not exceed a 1/2 acre in a city or town, or 40 acres elsewhere.
Kansas [Section 59-401]
The homestead exemption limit in Kansas is unlimited.
Kentucky [Section 427.060]
The homestead exemption limit is $5,000.
Louisiana [Section 20.1]
The homestead exemption limit in Louisiana is $25,000 for real property. The property may not exceed 200 acres. A couple may not double these amounts. The homestead exemption may be claimed by the spouse or child of the deceased debtor.
Maine [Title 14, Section 4422]
The homestead exemption limit in Maine is $35,000. If the debtor is 60 or over or mentally or physically disabled, then the exemption limit is $70,000.
Maryland [Section 16-111]
There is no homestead exemption. However, property that is held in tenancy by the entirety may be exempt from the debts owed by one spouse.
Massachusetts [Chapter 188: Section 1 and Section 1A]
The Massachusetts homestead exemption is $500,000. Those disabled or over 62 qualify for a $500,000 exemption. Couples may not double the amount.
Michigan [Section 600.6023]
The Homestead exemption amount in Michigan is $3,500. The property may not exceed one lot in a town or city and 40 acres elsewhere.
Minnesota [Sections 510.01 thru 510.09]
The Homestead exemption amount in Minnesota is $200,000. If the homestead is used primarily for agricultural purposes, then the exemption limit is $500,000. The property can't exceed a half acre area within a city or town, or 160 acres everywhere else. It is important to note that certain exemptions can be adjusted for inflation during even-numbered years.
Mississippi [Sections 85-3-1, 85-3-21, 85-3-23, 85-3-27, 85-3-31]
The homestead exemption limit for those not widowed or over the age of 60 is $75,000. The property cannot exceed 160 acres. The proceeds of the homestead sale are exempt. A homestead declaration may be filed.
Missouri [Sections 513.430 and 513.475]
The homestead exemption in Missouri is $15,000. The homestead exemption for a mobile home is $1,000. Couples may not double these amounts. Property that is held in tenancy by the entirety may be exempt from the debts owed by one spouse.
Montana [Sections 70-32-104, 70-32-201, 70-32-210, 70-32-105]
The homestead exemption limit in Montana is $100,000. Farmland property must not exceed 320 acres. Property outside the city must not exceed 1 acre, and property within the city must not exceed 1/4 acre.
Nebraska [Sections 40-101, 40-111, 40-113, 40-105]
The homestead exemption limit in Nebraska is $12,500. The property may not exceed two lots in a city or town, or 160 acres elsewhere.
Nevada [Statutes 115.005 thru 115.090]
The homestead exemption limit is $550,000 in Nevada. Debtors must record the homestead declaration prior to filing for bankruptcy.
New Hampshire [Section 480.1]
The homestead exemption limit in New Hampshire is $100,000.
New Jersey [None]
While there is no statutory homestead exemption, a homestead exemption may be claimed under the federal bankruptcy exemptions.
New Mexico [Section 42-10-09]
Married, widowed, and caregiver debtors may claim a homestead exemption up to $30,000. Couples may double the amount.
New York
The New York homestead exemption is limited up to $10,000 for a single person. A couple may double the homestead exemption limit.
North Carolina [Section 1C-1601]
The North Carolina homestead exemption is $10,000. Up to $3,500 of the unused portion of the homestead may be applied to any property. Property held in tenancy by the entirety is exempt from the debts owed by one spouse.
North Dakota [Sections 28-22-02(10), 47-18-01]
The homestead exemption limit in North Dakota is $80,000.
Ohio [Section 2329.66(a)(1)(b)]
The homestead exemption amount in Ohio is $5,000. Property held in tenancy by the entirety is exempt from the debts of one spouse.
Oklahoma [Sections 31-1 and 31-2]
The homestead exemption limit in Oklahoma is unlimited.
Oregon [Sections 23.240 thru 23.250]
The homestead exemption amount in Oregon is $25,000. The limit for couples is $33,000. If you do not own the land a mobile home is located on, then the exemption limit for the home is $23,000, or $30,000 for couples. The property can't exceed a one block area within a city or town, or 160 acres everywhere else. Sale proceeds are exempt for one year from the sale date, if the debtor intends to purchase another home.
Pennsylvania [None]
There is no homestead exemption. However, property that is held in tenancy by the entirety may be exempt from the debts owed by one spouse.
Rhode Island [Section 9-26-4.1]
The Rhode Island homestead exemption is $200,000 in land and buildings for an owner or owners of a home.
South Carolina [Section 15-41-30(1)]
The homestead exemption limit is $5,000. Couples may double the amount.
South Dakota [Section 43-45-3]
The homestead in South Dakota is $30,000. For persons age 70 and above the homestead was previously unlimited, but the unlimited exemption was ruled unconstitutional. A new statute, effective July 1, 2005, sets the cap for seniors at $170,000.
Tennessee [Sections 26-2-301 thru 26-2-303]
The Tennessee homestead exemption is $5,000 for a single person and $7,500 for a couple. The homestead exemption applies to property held in a life estate. The homestead exemption applies to property held in a 2-15 year lease. The homestead exemption applies to the spouse and children of the deceased. Property held in tenancy by the entirety is exempt from the debts owed by one spouse.
Texas [Article 16, Section 51]
The Texas homestead exemption is mandated by state Constitution. The homestead exemption value is unlimited. The exemption is limited to ten acres in a city or town.
Utah [Section 78-23-3]
The homestead exemption limit on real property in Utah is $20,000. A couple may double that amount. A homestead declaration must be filed before the homestead is sold.
Vermont [Section 1.5401(7)]
Visit this website: http://www.state.vt.us/tax/pdf.word.excel/legal/regs/15401.pdf
Washington [Section 6.13.030 thru 6.13.040]
The Homestead exemption amount in Washington is $40,000. There is no exemption limit if the debtor is seeking to discharge a debt, which was accrued for failure to pay Washington state income taxes on retirement benefits, while a resident of Washington. A homestead declaration must be filed before the sale of the home, if the property is unimproved or unoccupied.
West Virginia [Section 38-10-4(a)]
The homestead exemption is $25,000.
Wisconsin [Section 815.20]
The Homestead exemption amount in Wisconsin is $40,000. A couple may not double the amount. Sale proceeds are exempt for up to two years after the sale date.
Wyoming [Sections 1-20-101 thru 1-20-104]
The homestead exemption limit in Wyoming is $10,000 for real property and $6,000 for a trailer. A couple may double these amounts. A deceased debtors spouse or child may claim the homestead exemption. Property held in tenancy by the entirety may be exempt from the debts owed by one of the spouses.
Alabama [Section 6-10-2]
The homestead exemption limit in Alabama is $5,000 for real property. The property may not exceed 160 acres. A couple may double these amounts.
Alaska [Section 09.38.010]
The Homestead exemption limit in Alaska is $67,500.
Arizona [Statute 33-1101]
The homestead exemption in Arizona is $150,000. The sale proceeds are exempt for 18 months after the sale.
Arkansas [State Statute 16-66-210 and Federal Statute 16-66-218]
The Arkansas homestead exemption is classified into two types of homesteads: rural and urban. A debtor may only choose one type.
State Homestead Exemption: The homestead outside any city, town, or village, owned and occupied as a residence, shall consist of no more than one hundred sixty (160) acres of land, with the improvements thereon, to be selected by the owner. The homestead shall not exceed in value the sum of twenty-five hundred dollars ($2,500), but, in no event shall the homestead be reduced to less than eighty (80) acres, without regard to value.
Federal Homestead Exemption: Real or personal property if it is being used as a residence, is exempt. The homestead exemption limit for singles is $800 and $1,250 for couples.
California [Statute 704-730]
The homestead exemption limit is $50,000 in California for a single person, $75,000 for a couple, $150,000 if 65 or older, or physically or mentally disabled, $150,000 if 55 or older, and are single and earn under $15,000, or are married and earn under $20,000.
Colorado [Statutes 38-41-201 and 38-41-201.6]
The Colorado homestead exemption is $45,000, if the residence is occupied.
Connecticut [Section 52-352b(t)]
The homestead exemption limit is $75,000.
Delaware [Section 10-4914]
Delaware does limit the total amount in exemptions one can claim. A single person may exempt no more than $5,000 total in all exemptions and husband & wife may exempt no more than $10,000 total.
District of Columbia [Title 11, Chapter 5, Sub-Chapter II, Section 522]
The debtor's aggregate interest in real property used as the residence of the debtor, or property that the debtor or a dependent of the debtor in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or dependent of the debtor, is exempt. Debtors may choose from the state list of exemptions, or the federal list of exemptions. The federal list does allow for a homestead exemption.
Florida [Sections 222.01 and 222.02]
The Florida homestead exemption is mandated by state Constitution. The dollar value exemption is unlimited. The exemption is limited to a half acre tract within a city and one hundred and sixty contiguous acres, elsewhere. Property held in tenancy by the entirety may be exempt against debts owed by one spouse. The US Court of Appeals recently held that the exemption will apply even if the owner acquired the property or enlarged it, with the intent to defraud creditors.
Georgia [Section 44-13-100(A)(1)]
Real property is exempt up to $10,000. A couple may double this amount.
Hawaii [Section 246-26]
The Hawaii homestead exemption is $12,000. Those who are the head of household or individuals 60 years of age or over but not 70 years of age or over get 2.0 multiple or $24,000 exemption, and individuals who are 70 years of age or over get a 2.5 multiple of the $12,000 exemption or $30,000. The property must not exceed one acre. The sale proceeds of the homestead may be exempt for up to one year after the sale.
Idaho [Statutes 55-1001, 55-1002, 55-1003]
The homestead exemption limit in Idaho is $50,000 for real property.
Illinois [Statute 735-5, Section 12-901]
Illinois prohibits residents from using the federal bankruptcy exemptions, unless directed by Illinois law. The homestead exemption in Illinois is limited to $7,500. Additionally, the sale proceeds are exempt for one year from the sale of the property . A couple may double the homestead exemption.
Indiana [Statute 34-55-10]
The homestead exemption limit in Indiana is $7,500. The homestead plus any personal property may not exceed $10,000.
Iowa [Sections 499A.18, 561.16, 561.2]
The homestead exemption limit in Iowa is unlimited. The property may not exceed a 1/2 acre in a city or town, or 40 acres elsewhere.
Kansas [Section 59-401]
The homestead exemption limit in Kansas is unlimited.
Kentucky [Section 427.060]
The homestead exemption limit is $5,000.
Louisiana [Section 20.1]
The homestead exemption limit in Louisiana is $25,000 for real property. The property may not exceed 200 acres. A couple may not double these amounts. The homestead exemption may be claimed by the spouse or child of the deceased debtor.
Maine [Title 14, Section 4422]
The homestead exemption limit in Maine is $35,000. If the debtor is 60 or over or mentally or physically disabled, then the exemption limit is $70,000.
Maryland [Section 16-111]
There is no homestead exemption. However, property that is held in tenancy by the entirety may be exempt from the debts owed by one spouse.
Massachusetts [Chapter 188: Section 1 and Section 1A]
The Massachusetts homestead exemption is $500,000. Those disabled or over 62 qualify for a $500,000 exemption. Couples may not double the amount.
Michigan [Section 600.6023]
The Homestead exemption amount in Michigan is $3,500. The property may not exceed one lot in a town or city and 40 acres elsewhere.
Minnesota [Sections 510.01 thru 510.09]
The Homestead exemption amount in Minnesota is $200,000. If the homestead is used primarily for agricultural purposes, then the exemption limit is $500,000. The property can't exceed a half acre area within a city or town, or 160 acres everywhere else. It is important to note that certain exemptions can be adjusted for inflation during even-numbered years.
Mississippi [Sections 85-3-1, 85-3-21, 85-3-23, 85-3-27, 85-3-31]
The homestead exemption limit for those not widowed or over the age of 60 is $75,000. The property cannot exceed 160 acres. The proceeds of the homestead sale are exempt. A homestead declaration may be filed.
Missouri [Sections 513.430 and 513.475]
The homestead exemption in Missouri is $15,000. The homestead exemption for a mobile home is $1,000. Couples may not double these amounts. Property that is held in tenancy by the entirety may be exempt from the debts owed by one spouse.
Montana [Sections 70-32-104, 70-32-201, 70-32-210, 70-32-105]
The homestead exemption limit in Montana is $100,000. Farmland property must not exceed 320 acres. Property outside the city must not exceed 1 acre, and property within the city must not exceed 1/4 acre.
Nebraska [Sections 40-101, 40-111, 40-113, 40-105]
The homestead exemption limit in Nebraska is $12,500. The property may not exceed two lots in a city or town, or 160 acres elsewhere.
Nevada [Statutes 115.005 thru 115.090]
The homestead exemption limit is $550,000 in Nevada. Debtors must record the homestead declaration prior to filing for bankruptcy.
New Hampshire [Section 480.1]
The homestead exemption limit in New Hampshire is $100,000.
New Jersey [None]
While there is no statutory homestead exemption, a homestead exemption may be claimed under the federal bankruptcy exemptions.
New Mexico [Section 42-10-09]
Married, widowed, and caregiver debtors may claim a homestead exemption up to $30,000. Couples may double the amount.
New York
The New York homestead exemption is limited up to $10,000 for a single person. A couple may double the homestead exemption limit.
North Carolina [Section 1C-1601]
The North Carolina homestead exemption is $10,000. Up to $3,500 of the unused portion of the homestead may be applied to any property. Property held in tenancy by the entirety is exempt from the debts owed by one spouse.
North Dakota [Sections 28-22-02(10), 47-18-01]
The homestead exemption limit in North Dakota is $80,000.
Ohio [Section 2329.66(a)(1)(b)]
The homestead exemption amount in Ohio is $5,000. Property held in tenancy by the entirety is exempt from the debts of one spouse.
Oklahoma [Sections 31-1 and 31-2]
The homestead exemption limit in Oklahoma is unlimited.
Oregon [Sections 23.240 thru 23.250]
The homestead exemption amount in Oregon is $25,000. The limit for couples is $33,000. If you do not own the land a mobile home is located on, then the exemption limit for the home is $23,000, or $30,000 for couples. The property can't exceed a one block area within a city or town, or 160 acres everywhere else. Sale proceeds are exempt for one year from the sale date, if the debtor intends to purchase another home.
Pennsylvania [None]
There is no homestead exemption. However, property that is held in tenancy by the entirety may be exempt from the debts owed by one spouse.
Rhode Island [Section 9-26-4.1]
The Rhode Island homestead exemption is $200,000 in land and buildings for an owner or owners of a home.
South Carolina [Section 15-41-30(1)]
The homestead exemption limit is $5,000. Couples may double the amount.
South Dakota [Section 43-45-3]
The homestead in South Dakota is $30,000. For persons age 70 and above the homestead was previously unlimited, but the unlimited exemption was ruled unconstitutional. A new statute, effective July 1, 2005, sets the cap for seniors at $170,000.
Tennessee [Sections 26-2-301 thru 26-2-303]
The Tennessee homestead exemption is $5,000 for a single person and $7,500 for a couple. The homestead exemption applies to property held in a life estate. The homestead exemption applies to property held in a 2-15 year lease. The homestead exemption applies to the spouse and children of the deceased. Property held in tenancy by the entirety is exempt from the debts owed by one spouse.
Texas [Article 16, Section 51]
The Texas homestead exemption is mandated by state Constitution. The homestead exemption value is unlimited. The exemption is limited to ten acres in a city or town.
Utah [Section 78-23-3]
The homestead exemption limit on real property in Utah is $20,000. A couple may double that amount. A homestead declaration must be filed before the homestead is sold.
Vermont [Section 1.5401(7)]
Visit this website: http://www.state.vt.us/tax/pdf.word.excel/legal/regs/15401.pdf
Washington [Section 6.13.030 thru 6.13.040]
The Homestead exemption amount in Washington is $40,000. There is no exemption limit if the debtor is seeking to discharge a debt, which was accrued for failure to pay Washington state income taxes on retirement benefits, while a resident of Washington. A homestead declaration must be filed before the sale of the home, if the property is unimproved or unoccupied.
West Virginia [Section 38-10-4(a)]
The homestead exemption is $25,000.
Wisconsin [Section 815.20]
The Homestead exemption amount in Wisconsin is $40,000. A couple may not double the amount. Sale proceeds are exempt for up to two years after the sale date.
Wyoming [Sections 1-20-101 thru 1-20-104]
The homestead exemption limit in Wyoming is $10,000 for real property and $6,000 for a trailer. A couple may double these amounts. A deceased debtors spouse or child may claim the homestead exemption. Property held in tenancy by the entirety may be exempt from the debts owed by one of the spouses.
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