What Is a Homestead and Why Do I Need One?

Anyone Who Owns And Occupies Their Primary Residence in Massachusetts Absolutely Should File a Homestead Declaration

The homestead laws are covered by the Massachusetts General Laws chapter 188 starting with section 1.

A Massachusetts homestead protects $500,000.00 (this value can be reduced in some instances depending on whether you file for bankruptcy) in equity in your home from being taken by creditors (i.e. by lien enforcement).

However, it is not automatic and therefore a Declaration of Homestead must be filed with the appropriate registry of deeds. A mobile home also qualifies for homestead protection but the declaration must be recorded in the town or city clerk's office.

Any one with an ownership interest that occupies or intends to occupy the property as that person’s primary residence may claim the homestead protection for the benefit of themselves, spouse and minor children.

You cannot claim a homestead if the property has been transferred into a trust.The sooner you record the homestead the better because it does not protect you from antecedant debt under state law. Also it lasts for as long as you live there until terminated.

The bottom line is that a homestead gives you a lot of protection for very little cost (presently the filing fee is $36.00 excluding legal fees to prepare the document). Homesteads are governed by the state and therefore not every state has a homestead available. Those that do allow homesteads each determine the amount that can be protected.