HOMESTEAD EXEMPTION

The Nevada Homestead Exemption is an inexpensive, yet powerful tool available to any homeowner.

 

A Homestead Declaration is a simple document that prevents a forced sale of your home to satisfy your debts to most creditors (unpaid medical bills, bankruptcy, charge card debts, business/personal loans, accidents). Nevada law provides that upon a homeowner's filing of a Homestead Declaration form with the County Recorder, up to a maximum of $550,000.00 of equity in a person's principal residence is protected from general creditor claims such as unpaid medical bills, charge card debts, business/personal loans, and accidents. The Homestead is also exempt from final process of any court or any forced sale or seizure. Additionally, the exemption remains in effect if the property is conveyed into a revocable trust for the benefit of the person or persons who filed the Homestead Declaration. However, the protection of the homestead is not absolute. It does not protect you from debts owed where you provided your home/land as collateral for a debt, such as a mortgage or lien you voluntarily allowed on the property. Also, the homestead exemption does not protect home equity from child support or alimony obligations, taxes, IRS liens, repayment of benefits, and mechanic's liens. In order to qualify for the exemption, you must declare your designation of the homestead in the protected property before the forced sale begins.

 

For more information about the homestead exemption, and how it fits in with your estate planning needs, call us at 702-909-2462 or contact us by email to arrange an initial consultation.