Homestead Flashcards
Urban Homestead
lots/contiguous lots not to exceed 10 acres w/o regard to value
must be residence or business
Rural homestead
200 or 100 acres, doesn’t have to be contiguous
who must join to sell homestead
both spouses even if the homestead is sep property
homesteads are free from creditors claims except
PM mortgages
taxes on the homestead
fed tax liens
mechanics/material-man’s lien for improvements
loan to enable parties to divide homestead in divorce
equity loan (second mortgage) for up to 80% of the value of the equity
conditions for a mechanics/material-mans lien to be against the homestead
signed by H and W, entered before the improvements made and recorded
what if you convey the homestead to a trust?
doesn’t stop the protection for the creditors but the trustee has legal title
probate homestead
right to occupy homestead, even if it was decedents sep property, for life rent free
for surviving spouse or minor kid
not for unmarried adult kid living at home
legal owner and homestead occupant. who pays what?
legal owner: casualty insurance premiums and mortgage principal
homestead occupant: real property taxes and mortgage interest premiums
allowance in lieu of homestead
15K allowance in lieu of homestead if decedent didn’t own a home (lived in apartment)
allowance in lieu of exempt personal property
5K allowance total
available to the extent items on exempt personal property list are not in the estate at death
family allowance
provide support for surviving spouse, minor kids, incapacitated adult kids during one year
what to consider when determining the amount of family allowance
not the size of the community but the size of sep
family allowances come out of the community
valid loans made in connection w/improvement to property requires
contract for improvements to be in writing before materials or labor is furnished by both spouses
owner and spouse can’t execute contract for work and materials before 12th day after owners make written app for extension of credit unless needed b/c of effect of health/safety of the ppl living in the homestead
must sign at the office of the lender, attorney or title company
homesteads and easements
owner of the servient estate is qualified to make a grant of the easement
so husband could, w/o joinder of wife, grant an easement over which CP which is the homestead when such an easement doesn’t destroy nor materially affect its use
homestead and o/g
neither spouse can sell, convey, encumber homestead property even if it is technically the separate property
b/c o/g lease is basically a conveyance of part of homestead so you have to have joinder
