There are two types of homestead in Florida. There is a homestead exemption from seizure of your house by creditors and there is the property tax exemption of the first $25,000.00 of property value on your house. In order to take advantage of the $25,000.00 homestead exemption on your house (and additional exemptions for certain counties where your income is low), make sure you go to your tax appraiser's office early in the new year. When you go, bring copies of electric bills, a driver's license, a voter registration card and other documents to prove that you live at the house where you are claiming the exemption. Also bring a copy of your deed showing that you own the house. Generally, homestead exemptions for property taxes take effect in the year following the application so file early so that the following year you get the full exemption. Remember, there is a deadline for filing (generally March 1st of each year) so makes sure you file on a timely basis for your homestead exemption.

Another type of homestead exemption is contained in the Florida Constitution (see Article X, Section 4), which states that there shall be exempt from forced sale under process of any court the homestead to the extent of 160 acres outside a city and up to ½ acre if within a city. The homestead exemption also applies to the first $1,000.00 of personal property you may own (such as cars, tools, etc.). Also, the homestead exemption against seizure by creditors applies to your heirs who inherit your home. There are a couple of things to keep in mind regarding the constitutional homestead exemption:

(1) The constitutional homestead exemption does not apply to home mortgages and home improvement loans;
(2) If at all possible, pay off your house and never borrow against it;
(3) If you have to, you can declare bankruptcy and still get to keep your home;
(4) Never fall for the trap of borrowing against your personal home;
(5) Be aware of how your house passes upon your death. The rule is that your house passes to your spouse if it is in both names. But if your house is your name only, then your spouse only receives a "life estate" (the right to live in the house for life) and then after the spouse is dead, the house goes to your children. In general, you cannot will your house to anyone except your spouse and then only if you have no minor children;
(6) Husbands and wives may join together to borrow money against a house including a home mortgage.