When you own a home in Massachusetts, protecting your most valuable asset is a top priority. One way to safeguard your home is through filing a Declaration of Homestead.
What Is a Declaration of Homestead?
A Declaration of Homestead is a legal document that provides homeowners with protection against creditors in certain circumstances. By filing this declaration, a portion of your home’s equity is protected from attachment, execution, or forced sale in the event of legal claims against you, with some exceptions.
The Benefits of Filing a Homestead Declaration
1. Protection from Certain Creditors
The primary advantage of filing a Homestead Declaration is that it protects the equity in your home from most creditors. In Massachusetts, homeowners can protect up to $500,000 of equity in their principal residence. This means that if a creditor wins a judgment against you, your home is shielded up to that amount, helping ensure that your home remains secure even in the event of financial difficulties.
2. Coverage for Spouses and Family Members
The homestead protection extends to the family members who live with the homeowner. If you file a regular Declaration of Homestead, your spouse and dependent family members who live in the home benefit from the same protection.
3. Flexibility and Future Protection
Homestead protections are not affected by the refinance of a mortgage. Your declaration remains in place unless you formally release it or sell the property. This makes it a lasting investment in the security of your home.
The Cost of Filing a Homestead Declaration
Filing a Declaration of Homestead is relatively inexpensive. In Massachusetts, the filing fee typically ranges between $35 to $50, depending on the county where the property is located. This small cost can provide substantial peace of mind by protecting up to half a million dollars of your home’s equity.
Requirements for Filing a Regular Declaration of Homestead
To file a regular Declaration of Homestead in Massachusetts, you must:
• Own a home that is your principal residence.
• Complete the Homestead Declaration form and file it with the Registry of Deeds in the county where the property is located.
• Pay the applicable filing fee.
Once filed, your homestead protection is automatic and requires no further action unless your property is sold or transferred.
Elderly Homestead Declaration: Additional Protection for Seniors
Massachusetts also offers enhanced protection for homeowners aged 62 and older through the Elderly Homestead Declaration. Here’s how it differs from the regular homestead:
1. Increased Protection
Each individual aged 62 or older who owns the home can file an Elderly Homestead Declaration. This means that if two senior homeowners reside in the property, they can each file and protect up to $500,000 in equity, providing up to $1 million in total protection.
2. Same Cost and Requirements
The process for filing an Elderly Homestead is very similar to that of a regular Homestead Declaration. You will need to file with the appropriate Registry of Deeds and pay the filing fee. The main difference is that you must be 62 years or older to qualify.
3. Enhanced Security for Older Homeowners
As retirees and seniors often live on fixed incomes, having enhanced equity protection ensures that unexpected financial hardships won’t put your home at risk.
Why You Should File Today
Filing a Declaration of Homestead is a simple and affordable way to safeguard one of your most valuable assets—your home. Whether you’re a young family or a senior homeowner, protecting your home from creditors can provide a sense of security and financial stability. The small cost and minimal effort involved in filing are well worth the peace of mind that comes with knowing your home is protected.
If you have any questions about filing a Declaration of Homestead or need help navigating the process, our firm specializes in real estate law in Massachusetts and is here to assist you. Whether it’s a regular or elderly homestead, we can guide you every step of the way.
