Chapter 376
2012 -- S 2485
Enacted 06/21/12
A N A C T
RELATING TO
COURTS AND CIVIL PROCEDURE -
Introduced By: Senator Michael J. McCaffrey
Date Introduced: February 16, 2012
It is enacted by the General
Assembly as follows:
SECTION 1. Section 9-26-4.1 of the General Laws in Chapter
9-26 entitled "Levy and
9-26-4.1.
attachment as set forth in section 9-26-4, an estate of
homestead to the extent of three hundred
thousand dollars ($300,000) five hundred thousand dollars ($500,000) in the land and
buildings
may be acquired pursuant to this section by an owner or
owners of a home or one or all an
individual who rightfully possess possesses the premise
premises by lease, as a life tenant, as a
beneficiary of a revocable or irrevocable trust or otherwise, and who occupy occupies
or intend
intends to occupy the home as a his or her
principal residence. The estate of homestead provided
pursuant to this section shall be automatic by operation of
law, and without any requirement or
necessity for the filing of a declaration, a statement in a
deed, or any other documentation. The
estate shall be exempt from the laws of attachment, levy on
execution and sale for payment of
debts or legacies except in the following cases:
(1)
assessments;
(2) For a debt
contracted prior to the acquisition of the estate of homestead;
(3) For a debt
contracted for the purchase of the home;
(4) Upon an order issued
by the family court to enforce its judgment that a spouse pay a
certain amount weekly or otherwise for the support of a
spouse or minor children;
(5) Where a building or
buildings are situated on land not owned by the owner of a
homestead estate are attached, levied upon or sold for the
ground rent of the lot upon which the
building or buildings are situated;
(6) for
a debt due to, or a lien in favor of, the department of human services and/or
the
state of
(7) For a debt
heretofore or hereafter owing to a federally insured deposit taking
institution or a person regulated or licensed under title 19.
(b) For the purposes of
this section, "owner of a home" includes a sole owner, lessee (but
only a lessee that was the owner of a home prior to a
transfer to the lessor), joint tenant, tenant by
the entirety or tenant in common; provided, that only one
owner individual may acquire an estate
of homestead in the home for the benefit of his or her
family; and provided further, that an estate
of homestead may be acquired on only one principal
residence for the benefit of a family. For the
purposes of this section, "family" includes either a
parent and child or children, a husband and
wife and their children, if any, or a sole owner. The
provisions of this section shall not apply to
any debt owing to a financial institution, or private
mortgages regulated institution, a debt secured
by a mortgage or other voluntary lien on a home, or a mechanics' lien on the property comprising
the estate as provided for under chapter 28 of title 34.
Notwithstanding any other provisions of
law, it shall not be necessary to record a declaration of
homestead in order to take advantage of
the homestead estate exemption.
SECTION 2. Section 44-3-38 of the General Laws in Chapter
44-3 entitled "Property
Subject to Taxation"
is hereby amended to read as follows:
44-3-38.
Transfer of property to trust. -- Any exemption,
freeze of tax rates and/or
valuation granted to any individual or individuals pursuant
to this chapter is not affected if
pursuant to the provisions of the general laws, and/or
pursuant to any public law or municipal
ordinance shall not be affected if the otherwise the eligible individuals individual:
(1) Transfers
an ownership interest in the property while retaining a
life estate in the property; or (2) Transfers
an ownership interest while leasing the property back (but
only where the lessee was the owner of
the property prior to the transfer to the lessor); or transfer
(3) Transfers the property to a
revocable or irrevocable living trust, if and so long
as the otherwise eligible individual resides in
such property and the otherwise eligible individual or the
trustee is legally obligated to pay
property tax on such property by contract, by agreement, by
the terms of the trust instrument, or
otherwise by law. The provisions of this section shall be
applicable to any such transfer,
regardless of when the transfer is made.
SECTION 3. This act shall take effect upon passage.
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LC00973
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