Disclaimer and Warning - From Bob Parrish CPA, P.C.

Remember........"You can have everything Disclaimer and Warning - From Bob Parrish CPA, P.C.in  life you want, if you just help enough other people get what they want."  -Zig Ziglar.

Email: bmsarasota@comcast.net  941-387-0926; 432-367-3465 email, USA Mail, Fax, telephone or request a meeting

Is My Personal Residence Protected From Back Taxes, Court Awards, Settlements and/or Bankruptcy?

Question or Topic

Is my personal residence protected from back taxes, court awards, settlements and/or bankruptcy?

The Answer

Back Taxes - generally speaking NO !

Court awards, settlements and/or bankruptcy -Yes, but only if you follow the rules carefully.

The fact you sleep and eat in a dwelling does not in itself protect your property from loss, auction or seizure.

Both local and federal governments may seize your home to collect back taxes.  Some jurisdictions sell "Tax Certificates" the moment your taxes become past due.  The holder of the certificate has the authority to demand payment of the tax amount plus interest and if you do not pay in nearly all circumstances can force the home to be auctioned.

If you have pledged your home as collateral - it may be foreclosed.

 

Solutions are dependent upon facts & circumstances, law and the objectives.  These elements vary from one time to another, from one circumstance to another and from from person or entity to another.

Know Whether the Property Qualifies as a Homestead & Whether It Has Been Claimed As Homestead

The definition of homestead is clear but not always defined by statue.  IF the property has:

  1. A place to sleep

  2. A place to eat & cook

  3. A place to bathe and a water closet

  4. _______________

  5. There is no requirement the dwelling be classified as "real property"

  6. Officially and formally claim the dwelling to be your homestead

ALL of the above must be answered yes.  The above mean the dwelling has the potential to be a homestead.  The fact you use it for all the above does not make it a homestead.  You must hold this to be your homestead, and the most sure method is to do that in writing.  Click here to read an Affidavit.  Use this Affidavit of Homestead Designation to formally claim the dwelling and place the public on notice.

FILE THE  Affidavit of Homestead Designation

 

Protect Your Title to The Property

When you purchase the property - have an attorney represent you.  Purchase a Title Policy.

OBTAIN A TITLE POLICY WHEN YOU PURCHASE THE RESIDENCE 

You may find some comfort by hiring an attorney to inspect all official records routinely - perhaps not every year to be certain it is clear.

  This is far from complete more will be added in the future - 

You may want to read other articles:

Trusts - Qualified Personal Residence Trusts & Their Uses

Asset Protection - Using Trusts

Trust - Types of Trusts an Introduction

The Family Limited Partnership- A Planning Technique

Asset Protection

 

I shall always strive to accomplish your goals, and to keep your planning in balance.  You will find no other adviser or groups of advisers that has your potential and your security more in focus than I. 

Call Me

Simply to Help —Helping You To Keep More Of What You Earn, and Helping You To Protect What You Keep

 - Help To Keep Your Life In Balance

Very truly yours,

by

                                               

       Bob Parrish CPA Engagement Manager