How Much is the Arizona Homestead exemption? 

Under A.R.S. § 33-1101 homestead protection against “non-consensual liens” is limited to only $400,000 total, for both spouses. While some other categories apply to each individual and thus double in the case of a married couple on some forms of personal property, homestead is not one of them.  

How Many Home Does Arizona Homestead Protection Cover? 

Homestead applies to one primary residence only.

What if I own more than one home? 

Secondary residences, like a vacation home or a rental home are not covered and need to be protected with appropriate legal tools. 

Are There Exceptions to Homestead Protection? 

Homestead is not a defense against specific and consensual liens against the home including mortgages, HELOCs, etc.

Can Homestead Protection Be Lost or Abandoned? 

Yes,  homestead may be abandoned by any of the following:

-  A declaration of abandonment or waiver.

- A transfer of the homestead property by deed of conveyance or contract for conveyance. Transfers to your estate planing trust, such a Revocable Living Trust do not constitute abandonment. 

- A permanent removal of the homeowner from the residence or the state.

Can I Keep My Homestead Protection if I am Away Temporarily? 

Yes, you can be out of the home for up to two years without an abandonment or a waiver of the exemption.

Can an LLC Protect My Home? 

Typically no, there is no valid business purpose for this, and we consider this defective for asset protection purposes. We do selectively use private LLCs in combination with other tools and measures, to provide luxury homeowners some privacy, especially when they are high profile, HNW and have security concerns. 

My Home is In My Revocable Living Trust or Family Estate Planning Trust - Is It Protected? 

No. Many luxury homeowners are blindsided by the fact that a revocable trust does not protect your assets, from your creditors, during your lifetime. 

What Legal Tools Work for Protecting Luxury Homes? 

Typically the best protection for personal residences comes through irrevocable trust structures. 

Some trusts, like a QPRT, or qualified personal residence trust, as one common specific example, are used to make a permanent gift of a home to your heirs, but may not be a good fit if you have a mortgage, want to use your home equity for business and investing, and aren't ready to give your home away yet. This is primarily used as estate tax avoidance tool for legacy properties that you want to keep in the family, family cabin at the lake, beach house, etc. 

For financially qualified luxury home owners with seven and eight figures in exposed home equity in one or more homes, we use a sophisticated, irrevocable Asset Protection trust called a Bridge Trust. 

Why is a Bridge Trust So Good for Protecting Luxury Homes? 

1. It can hold more than one home
2. It will not trigger a due on sale clause in your mortgage 
3. You get to keep mortgage interest deductions and capital gains benefits 
4. You can sell one home and buy another in the trust 
5. You can collateralize the equity in the home or obtain a HELOC etc. 
6. You can liquidate the quyity with sale or HELOC and even more it offshore should you desire to do so

Can "Land Trusts"Protect Luxury Homes? 

Usually no. Most of the "Land Trusts" we see marketed by promoters, including both attorneys and non-attorney document preparers, are basically just one or more Revocable Trusts that are used to hide the ownership of a property.  The asset is usually fully available to any creditor due to the revocable nature of the trust. This strategy is often sold with pitches like, "They can't take what they can't find". They will find it, and they will take it. The reality is that if you are involved in legal dispute you will be asked about your assets, your will have to disclose them under penally of perjury, and if you fail to do so, you are committing fraud.  Hiding something, hoping no one finds it, and being willing to lie about if you are asked, is not a serious asset protection plan. 

Nothing in this format is ever specific legal advice. If you have a home with seven or eight figures in equity anywhere in the country, we can help put a plan together based on your specific facts that helps protect the equity in your home and most of your other wealth.