Today we are going to talk about:
“How to know if you need to Homestead your home?”
A Homestead is a special provision in California to allow homeowners’ to protect their property from forced sale to satisfy their debts within certain limits. It does not protect the home owner against trust deeds, mechanics’ liens, or prior –to-filing liens. The Declaration of Homestead is the form that must be acknowledge and recorded to protect the owner.
What Property Does It Cover?
. House and adjoining property
. Condominiums and town homes
. Life Estates
You may only have one Homestead at a time.
How Much Does it Protect you for?
. Head of Households $75,000
. Persons who are mentally or physically disabled,
or those who are over 65 years of age $100,000
. Any resident who does not qualify for one of the above- $50,000
Requirements to be met to make the Homestead valid:
. A statement showing the claimant is the head of the family and stating the name of the spouse
. A statement showing that the claimant is residing on the property and claims it as his or her homestead
. A description of the premises and an estimate of cash value
. The declaration of homestead may need to contain a statement as to the character of the property, and that no former declaration has been made.
Forms you might need: