Chapter 392
2012 -- H 7662
Enacted 06/21/12
A N A C T
RELATING TO
COURTS AND CIVIL PROCEDURE--PROCEDURE GENERALLY -- LEVY AND
Introduced By: Representatives Jackson, O`Neill, Gallison, Lally, and Keable
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
by lease premises by lease, as life tenant,
as a beneficiary of a revocable or irrevocable trust or otherwise, and who occupy or intend
occupies or 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
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 the
eligible individuals transfer the property to a revocable
living trust 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 eligible 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 (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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LC00900
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