## Facts

- Merry Alexander lived continuously in a Clearwater, Florida residence since 1995 and treated it as her personal home.
- In 2002, title to the residence was conveyed to a revocable trust.
- Alexander was the sole trustee and sole primary (lifetime) beneficiary, with exclusive possessory rights; her children were remainder beneficiaries.
- The trust was revocable at Alexander’s will, and she retained control to amend or revoke it.
- A bankruptcy trustee for Reed Slatkin held an unsecured judgment claim against Alexander for $250,896.51 plus interest, based on a federal judgment tied to alleged fraudulent transfers connected to a Ponzi scheme.
- Alexander filed a voluntary Chapter 7 petition (June 17, 2005) and claimed the residence as exempt homestead under Florida law.
- The Slatkin trustee and Alexander’s Chapter 7 trustee objected to the homestead exemption and moved for partial summary judgment, arguing the Florida Constitution protects only homesteads “owned by a natural person” and the trust held record title.

## Issues

1. Whether a debtor may claim Florida’s constitutional homestead exemption in a residence titled in a revocable trust when the debtor is the sole trustee, sole primary beneficiary, and exclusive occupant.
2. Whether the Florida Constitution’s “owned by a natural person” requirement is satisfied by the debtor’s equitable/beneficial interest and control rather than record title.
3. Whether the nature of the creditor’s claim (arising from alleged fraudulent transfers) justifies denying the homestead exemption absent an express constitutional or statutory exception.

## Decision

- The court overruled the trustees’ objection to the homestead exemption.
- The court held Alexander was entitled to the Florida homestead exemption despite the residence being titled in a revocable trust.
- The trustees’ joint motion for partial summary judgment was denied in part.
- Alexander’s motion for partial summary judgment was granted in part.

## Legal Principles

- Florida homestead protection may apply if the debtor has an ownership interest that gives a legal right to use and occupy the property as a residence; fee simple title is not required.
- A sufficient interest exists where the debtor (1) holds a legal or equitable interest conferring a right to possess and use the property, (2) intends to make it homestead, and (3) actually maintains it as a principal residence.
- The “owned by a natural person” requirement may be satisfied by a debtor’s equitable ownership and control of a revocable trust holding title, particularly where the debtor can revoke the trust and has exclusive possession.
- Florida homestead provisions are construed in favor of the homeowner, and courts generally will not create additional equitable exceptions beyond those expressly recognized (such as taxes, mortgages, and mechanics’ liens).

## Conclusion

Because Alexander retained revocation power, control as sole trustee, exclusive beneficial possession, and longstanding actual residence with homestead intent, her residence qualified as exempt homestead under Florida law even though record title was held in a revocable trust.


In re Alexander, 346 B.R. 546 (Bankr. M.D. Fla. 2006)