Florida’s homestead protections are some of the strongest in the nation. They shield a person’s primary residence from creditors and provide special benefits for heirs. But what happens if your will directs the sale of that homestead? As the case of Knadle v. Estate of Knadle, 686 So. 2d 631 (Fla. 1st DCA 1997), shows, including a sale directive in your will can have serious, unintended consequences.
The Case: Knadle v. Estate of Knadle
In Knadle, the decedent’s will directed the personal representative to sell the homestead property and distribute the proceeds among the beneficiaries. On the surface, this might seem like a simple instruction to liquidate assets and split them up. But the court found that the sale directive changed the status of the homestead property in a very important way: it stripped the property of its homestead protection.
Why Does This Matter?
Florida’s Constitution protects homestead property from being taken by creditors, both during the owner’s life and after their death. However, this protection only applies if the homestead is passed directly to heirs. In Knadle, because the will directed a sale, the property was no longer considered a protected homestead—it became part of the decedent’s general estate, which meant creditors could now make claims against it.
The Court’s Ruling
The Florida First District Court of Appeal ruled that when a will directs the sale of homestead property, the property loses its protected status. It becomes part of the probate estate and is subject to creditor claims. This is a critical point for anyone drafting a will: if you want to preserve homestead protection, you must avoid directing the sale of the homestead in your will.
What Should Have Been Done?
In hindsight, the decedent in Knadle could have preserved the homestead protection by directly leaving the property to their heirs without any mention of a sale. Here’s why:
Homestead Status Remains Intact
If the homestead is passed directly to heirs, it retains its creditor protection, ensuring that creditors cannot force its sale.
Protection for Heirs
Heirs can inherit the property free of creditor claims, keeping the homestead in the family.
Specific Instructions for Heirs
If you want your heirs to have the option of selling the property after they inherit it, they can do so themselves, keeping control over the decision and ensuring that creditor protection remains intact until the sale.
Final Thoughts
The case of Knadle v. Estate of Knadle is a cautionary tale for anyone drafting a will in Florida. A simple provision to sell homestead property can unravel the very protections that make Florida’s homestead laws so valuable. If you own homestead property and are thinking about your estate plan, it’s essential to consider how your will treats that property and whether your beneficiaries will be able to retain its protections.
If you want to ensure that your homestead is protected and passed to your heirs without creditor interference, contact us today to review your estate plan. We can help you navigate Florida’s complex homestead laws and make sure your wishes are honored.
Lori Vella is an Estate Planning and Business Attorney. She works virtually throughout Florida and New York, but has her home office in Tampa, Florida. She is mom to a little boy which ignited the passion for helping other families. She and her son enjoy car rides, playgrounds and taking mini-adventures. They also have an organic garden that surprisingly yields vegetables. Lori considers herself well-versed in Seinfeld and welcomes any trivia!
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