Monday, July 15, 2024

Washington State King County rules Homestead Law with protections applies to vehicles used as principal residences

 On appeal to King County Superior Court, the court ruled that Washington’s Homestead Act (“Act”) (chapter 6.13 RCW) applies to vehicles that are used as residences. The court found that homestead status attaches to a vehicle from the time an owner starts using it as a residence and that filing a “declaration of homestead” is not required to invoke homestead protections.

https://mrsc.org/stay-informed/mrsc-insight/august-2020-1/living-in-vehicles-homestead-rights 

  The purpose of the Act is to place qualifying homes, or portions of them, beyond the reach of judgments and creditors to prevent families from experiencing destitution and to promote the stability and welfare of the state. The origins of the Act are in the Washington Constitution, which provides (Article 19, Section 1): “The legislature shall protect by law from forced sale a certain portion of the homestead and other property of all heads of families.” The Act implements this directive and RCW 6.13.070 provides that real or personal property used as a residence “is exempt from attachment and from execution or forced sale for the debts of the owner up to the amount specified in RCW 6.13.030.”

 The Court of Appeals concluded that homestead protections attached to Mr. Long’s truck automatically. Although the Act is ambiguous on this question, the Court of Appeals noted that: (1) homesteads are favored under Washington law and courts construe the Act liberally to protect family homes; and (2) the legislative history of 1993 amendments to the Act disclosed an intent for the automatic homestead protections to apply to people residing in their vehicles.

  if that vehicle serves as the owner’s principal residence, the City may not withhold the vehicle from the owner under the threat of forced sale.

 fascinating!!! Wow!

On June 29, 2020, the Washington Court of Appeals affirmed this aspect of the decision in the published decision of City of Seattle v. Long.

 https://sccinsight.com/wp-content/uploads/2018/03/City-v.-Long-March-2-2018-Ruling-transcript-attachment.pdf

 A principal residence is also referred to as a primary residence or main residence.

 A homestead with a value of $450,000 or less is protected from creditors' claims unless the creditor has a mortgage or an actual lien against the property for improvements made to the property. An automobile with a value of up to $5,000 is also exempt.

 https://www.lawhelpmn.org/self-help-library/fact-sheet/property-and-income-protected-creditors

Minnesota law protects certain types of essential property from creditors. The exemptions that are most relevant to senior citizens are as follows: (Values effective from July 1, 2020 through July 1, 2022)

  • A homestead with a value of $450,000 or less is protected from creditors' claims unless the creditor has a mortgage or an actual lien against the property for improvements made to the property.
  • An automobile with a value of up to $5,000 is also exempt. The value protected is much higher, $50,000, if the vehicle has been modified at a cost of at least $3,750 to accommodate a disability.
  • A manufactured home (often called a "mobile home") is exempt if the debtor actually lives in the home.
  • Personal belongings with a value of up to $11,250 are also protected.
  • Money held in a health savings account with a present value of up to $25,000 is protected as of May 1, 2018.

 

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