Legal Question in Tax Law in California

Re: homesteading

Thanks for your question. In California, a Homestead gives protection against involuntary claims against an owner's home.

The amount of equity protected depend on the classification of the owner. The amount of the homestead exemption is determined pursuant to Code of Civil Procedure Section 704.730 depending on the circumstances of the case at the time the amount is required to be determined.

The Homestead is either automatic or declared. To declare a Homestead, a one-page document must be filed in the County Recorder where the property is located.

It is preferable to file a Declaration of Homestead before a claim is filed against the property. However, before such a claim can be filed against the property normally a lawsuit judgment is required. Thus, there is usually plenty of notice, and a Homestead can be filed even at the last minute.

If you want to Declaration of Homestead, you can do it yourself, very easily, without using a professional service which charges too much and makes the benefits seem much greater than they are.

A homestead does not affect property taxes in any way whatsoever. If you have other questions, please feel free to email me at [email protected].

Re: homesteading

All personal residences are automatically homesteaded. A homestead will protcet a portion of your home from creditors, bun has no affect on property taxes.