Declaration of Homestead and
Chapter 218 of the Acts of 2004
In Massachusetts, an estate of Homestead is an interest in real property
intended to protect the possession and enjoyment of the homeowner or owner’s
surviving spouse and dependent children against the claims of creditors. By
filing a Homestead Declaration with the county registry of deeds, a
homeowner can protect the equity in their primary residence up to $300,000.
Essentially, the Homestead protects the property from forced sale to claim
the equity as a result of civil judgments, creditors’ attachments, and
certain other debts.
In October of 2004, the protection amount of the Homestead Act will increased from
$300,000 to $500,000. That means if you have already filed a Homestead on
your primary residence, the Homestead will protect you up $500,000 from
future creditors' attachments. The change of coverage in the Homestead Act
also increased to $500,000 for both the elderly and handicapped, who once
had separate coverage amounts under the Act.
The Homestead still does not offer protection from prior existing debts, and
debts owed for State, Federal, Real Estate taxes, or Court Orders for
support of a spouse or minor children.
If you have not filed a Declaration of Homestead on your primary residence,
you should take advantage of the benefits by filling out the form and
recording it at your county registry of deeds. If you are not sure if you
have already filed one, or if you have any questions, or need help, contact
our office. |
