By: Brittany Hinojosa Citron
Owning a home is often considered one of life’s most significant accomplishments. Beyond its emotional value, a home is also a substantial financial asset for many individuals and families. However, unforeseen circumstances such as lawsuits, debts, or financial challenges can threaten the security of homeownership. To safeguard against these risks, Massachusetts offers homeowners the opportunity to declare a homestead.
The Massachusetts homestead law protects homeowners from the forced sale of their primary residence to satisfy certain debts or obligations. By filing a Declaration of Homestead in the county or district Registry of Deeds where the residence is located, homeowners can claim a portion of the equity in their home as “homestead protection.” This protection applies to various creditors, but it does not apply to mortgage lenders, tax liens, Medicaid/MassHealth liens for benefits paid on behalf of the homeowner (including benefits paid for nursing home care), and other specific types of debt. If the equity in your home is greater than the homestead protection, the home may still be sold, but the creditor will receive only what is left after you first receive proceeds equal to the amount of the homestead protection.
A homeowner is entitled to automatic homestead protection of $125,000, but homeowners who file a Declaration of Homestead with the Registry of Deeds can increase that protection to $500,000. For married couples where both spouses are over the age of 62, the homestead protection can be doubled by $1 million by filing an “Elderly” Declaration of Homestead. Increased homestead protection is also available to disabled individuals. Homestead protection is available whether you own your property in your individual name(s) or in trust.
Homestead protection isn’t just for the homeowner but extends to their spouse and minor (under age 21) children who reside in the home. This ensures that spouses and children are safeguarded from the loss of their primary residence due to financial difficulties.
Filing a Declaration of Homestead in Massachusetts is relatively straightforward and inexpensive. By taking advantage of the Massachusetts homestead law, homeowners can secure their primary residence and help ensure a portion of the equity in their homes for themselves and their loved ones. Whether facing unforeseen circumstances or simply seeking peace of mind, declaring a homestead is a prudent step towards protecting one’s most significant asset – the family home. If you have questions about homestead protection or if we can help you with your estate planning needs, please contact us to schedule a consultation with one of our attorneys.
Attorney Brittany Hinojosa Citron is an associate attorney with the Dedham, Massachusetts, firm of Samuel, Sayward & Baler LLC which focuses on advising its clients in the areas of estate planning, estate settlement and elder law matters. This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information or to schedule a consultation with one of our attorneys, please call 781-461-1020.
March 2024
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