Articles from Mair Law Offices

Did you know that you can protect your home from the claims of creditors? In Massachusetts, under The Homestead Act, there is an automatic homestead protection of $125,000. The amount of protection can be increased to $500,000 by filing a Declaration of Homestead with the Registry of Deeds in the county or district where the home is located.

The owners of a home that occupy the home as their principal residence are entitled to file a Declaration of Homestead. If the home is held in trust, the holder of the beneficial interest in the trust is considered an owner under the Homestead Act and is entitled to homestead protection. In this case, the trustee of the trust executes the Declaration of Homestead on behalf of the beneficiary.

Only the principal residence (the primary dwelling where an owner resides) is entitled to homestead protection – not vacation homes or rental properties. The principal residence subject to the Declaration of Homestead is protected against attachment, seizure, execution, sale for the payment of debts to the extent of $500,000 (or $125,000 if the Declaration is not filed with the Registry). Each owner named on the Declaration of Homestead and the owner’s family members who occupy the home have the benefit of the Declaration. Additional protection is available to owners 62 year of age or older or disabled persons regardless of age.

If the person who declares the Homestead dies, the law protects the family’s right to use, occupy and enjoy the home. In the case of elderly or disabled homestead protection, if there are multiple owners, it may be advisable to file one homestead declaration per owner. Note that liens  resulting from the payment of Medicaid benefits are exempt from homestead protection. There are other items exempt from homestead protection, notably mortgages, executions for the payment of spousal or child support and liens before the creation of the homestead.

The good news is that many real estate closing attorneys will have the buyers sign and record a Declaration of Homestead at the time of the purchase. How do you find out if you have homestead protection? You can check your closing documents and see if there is a copy of a recorded Declaration of Homestead. If you can’t find your documents or the Declaration, you can contact your attorney or go to www.masslandrecords.com and search for it in the proper Registry. Your attorney should be able to handle this cost effectively and quickly.

The Declaration of Homestead is a critical part of asset protection and estate planning. If you’re interested in reading about other legal topics or have questions that you can’t find answers to just let me know! You’re also invited to schedule a free consultation. You can also email glen@gmairlaw.com or call 508.250.0797. www.gmairlaw.com.

This article is intended to inform you of developments in the law and to provide information of general interest. It is not intended to constitute legal advice regarding a client’s specific legal issues and should not be relied upon as such. This article may be considered advertising under the rules of the Massachusetts Supreme Judicial Court.