What is the homestead exemption in Idaho?
Idaho has one of the most important, comprehensive homestead exemptions in the entire country. It reduces the taxable value of a home and the land that it sits on. It can also be a powerful asset protection tool. At Johnson May, we are leaders in both real estate law and estate planning in Idaho. Here, our Boise estate planning attorney provides an overview of the key things to know about the homestead exemption in Idaho.
Homestead Exemption: Defined
As explained by the Idaho State Tax Commission, the homestead exemption is a legal provision that reduces the taxable value of a person’s primary residence. In other words, in Idaho, homeowners can exempt up to a set amount of their home’s value from property taxes each year. It matters. The homestead exemption can translate into meaningful annual savings. Beyond taxes, the exemption also plays an important role in asset protection. In certain circumstances, creditors cannot force the sale of a homestead to satisfy debts. That helps to give Idaho families peace of mind knowing their primary residence is shielded from many types of credit claims.
Estate Planning in Idaho: Homestead Exemption as an Asset Protection Tool
While many people think of the exemption only in terms of tax relief, it also has a powerful estate planning and financial protection function. In fact, the asset protection aspects of our state’s homestead exemption is perhaps its most important feature. Idaho law provides that a certain amount of home equity is protected from creditors.
If you face financial hardship, creditors may be limited in their ability to force a sale of your primary residence to collect debts. Put another way, the exemption can be a vital safety net, particularly for families who want to protect their home as a long-term asset. When combined with other estate planning tools, the homestead exemption makes a big difference.
An Overview of Practical Steps to Claim and Maintain Your Exemption
Claiming the homestead exemption in Idaho is relatively straightforward, but it is not automatic. Homeowners must complete and file the appropriate paperwork with their local county assessor. There is an annual deadline to do so. Once filed, you generally do not need to reapply unless ownership or use of the property changes. In other words, claiming the homestead exemption once is sufficient in Idaho if there are no material changes to the property ownership. With that being said, if you move, transfer ownership, or change the property’s use, the exemption could be lost. A top-rated Boise estate planning lawyer can help to ensure the exemption is properly claimed, maintained, and incorporated into your overall financial/estate planning strategy.
Contact Our Boise, ID Homestead Exemption Attorney Today
At Johnson May, our Boise, ID homestead exemption lawyer is standing by, ready to help. If you have any questions about the homestead exemption or estate planning more broadly, please do not hesitate to call us now or contact us online for a fully private, no obligation initial consultation. From our offices in Boise and Twin Falls, we serve communities all across the wider region.
