Amends TCA Title 26 and Title 30.

This bill revises homestead exemption provisions under the execution and garnishment laws and the administration of estates laws, as follows:<br /> <br /> (1) Generally under present law, the homestead exemption is limited to $5,000, except individuals who jointly own and use real property as their principal place of residence are entitled to homestead exemptions, the aggregate value of which exemptions combined is limited to $7,500. This bill increases these exemption amounts to a maximum of $150,000 and $250,000, respectively.<br /> <br /> (2) Under present law, an unmarried individual who is 62 years of age or older is entitled to a homestead exemption not exceeding $12,500 upon real property that is owned by the individual and used by the individual as a principal place of residence; a married couple, one of whom is 62 years of age or older and the other of whom is younger than 62 years of age, is entitled to a homestead exemption not exceeding $20,000 upon real property that is owned by one or both of the members of the couple and used by the couple as their principal place of residence; and a married couple, both of whom are 62 years of age or older, is entitled to a homestead exemption not exceeding $25,000 upon real property that is owned by one or both of the members of the couple and used by the couple as their principal place of residence. This bill increases the exemption amounts in these provisions to be a maximum of $375,000; $600,000; and $750,000, respectively.<br /> <br /> (3) Under present law, an individual who has one or more minor children in the individual's custody is entitled to a homestead exemption not exceeding $25,000 on real property that is owned by the individual and used by the individual as a principal place of residence. This bill increases this amount to $750,000.<br /> <br /> (4) Under present law, all moneys arising from insurance on a homestead which is destroyed by fire, or by other disaster, is exempt in an amount not to exceed $5,000. This bill increases this maximum amount to be $150,000.<br /> <br /> (5) Under present law, when the real estate levied on is of greater value than $5,000, and is so situated that it cannot be divided so as to set apart the homestead, the freeholders must certify the fact, and the officer may proceed to sell the whole tract, and out of the proceeds the officer must pay to the clerk of the court rendering the judgment, or condemning the land for sale, $5,000, to be invested under the order of the court, in the purchase of a homestead for the debtor, and only the surplus over and above $5,000 is applied to the payment of the execution. This bill changes these amounts to be $150,000.<br /> <br /> (6) This bill adds that real property, up to 160 acres, including any dwelling, that is considered agricultural land and owned by the individual or married couple, is entitled to a homestead exemption up to but not exceeding $750,000 in value.<br /> <br /> (7) Under the present law administration of estates provisions regarding assignment of sale proceeds, if real estate is so situated that homestead cannot be set apart, then the realty must be sold and $5,000 of the proceeds invested in real estate, under the direction of the court having jurisdiction to be held as homestead subject to the law governing homestead, or if the court deems it more desirable and practical, it may order the payment of $5,000 in cash or other personal property outright and in fee to the surviving spouse, if any, otherwise to the minor children, if any, in lieu of all other homestead rights in the realty of the deceased. This bill changes this amount from $5,000 to $150,000, to correspond with other changes made by this bill.<br /> <br /> (8) (A) This bill adds that on April 1, 2021, and at each three-year interval ending on April 1 thereafter, the fiscal review committee must report to the chairs of the judiciary committees of the senate and the house of representatives, the amount by which the dollar amounts of exemptions in effect immediately before that date may be increased as provided in (B) below. Those increases will not take effect unless they are approved by the general assembly.<br /> (B) This bill requires the fiscal review committee to determine the amount of the adjustment based on the change in the average consumer price index, all cities average, published by the United States department of labor, bureau of labor statistics, for the most recent three-year period ending on December 31 preceding the adjustment, with each adjusted amount rounded to the nearest $25.00.<br /> <br />