Amends TCA Title 26 and Title 30

Present law establishes a homestead exemption on real property that is owned by an individual and used by the individual or the individual's spouse or dependent, as a principal place of residence. The homestead exemption is not subject to execution, attachment, or sale under legal proceedings during the life of the individual who holds the exemption. The amount of the exemption is as follows:<br /> <br /> (1) $5,000 for an individual;<br /> <br /> (2) $7,500 for individuals who jointly own and use real property as their principal place of residence;<br /> <br /> (3) $12,500 for an unmarried individual who is 62 years of age or older;<br /> <br /> (4) $20,000 for 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;<br /> <br /> (5) $25,000 for a married couple, both of whom are 62 years of age or older; and<br /> <br /> (6) $25,000 for an individual who has one or more minor children in the individual's custody. Under case law, co-owners may each claim a $25,000 homestead exemption.<br /> <br /> This bill increases the individual homestead exemption to $35,000, increases the joint exemption to $52,500, and eliminates the enhanced exemptions based on age and parental status.<br /> <br /> Under present law, there is a $5,000 insurance exemption for the proceeds of insurance on a homestead that is destroyed by fire or other disaster. This bill increases the insurance exemption to $35,000.<br /> <br /> When the real estate where a homestead is located is valued above $5,000, and is so situated that it cannot be divided to set apart the homestead, the property may be sold and $5,000 of the sale's proceeds must be paid to the clerk of court for reinvestment in a homestead for the debtor. This bill increases the reinvestment exemption to $35,000.<br /> <br /> This bill will take effect on January 1, 2022.<br />