The Massachusetts Homestead Act

A Declaration of Homestead allows the owner/owners to protect against attachment, seizure, execution on judgment, levy, or sale for the payment of debts up to an amount of $500,000, per residence, per family.

Massachusetts General Law, Chapter 188, Sections 1-10

Under M.G.L. c. 188, §§1-10, the owner/owners of a home, who reside in the home as their principal residence, can obtain homestead protection by filing a Declaration of Homestead, with the registry of deeds in the county in which the property is located.

Homestead protection has long been available on Massachusetts, but the Homestead Act was recently amended. As of March 16, 2011, the homestead law was amended in the following ways:

• (1)  Without filing a declaration of homestead an owner receives only an automatic homestead protection of $125,000, which is certainly better than nothing, but not likely to be enough to protect the full value of your home;
• (2)  A property that is owned by a trust is now eligible for homestead protection, as a holder of a beneficial interest in a trust is now considered an “owner” under the law. The trustee of the trust should execute a declaration of homestead on behalf of the beneficiary or beneficiaries.
• (3)  There are additional protections for spouses that are not listed as owners – for example neither divorce nor remarriage will affect the homestead protection of the spouse who still primarily resides in the home.
• (4)  Elderly persons, defined in the statute as people over age 62, and disabled persons, will be personally exempt up to $500,000. If there are two owners over the age of 62 both owners can file homestead declarations and the aggregate coverage will be $1,000,000.

From Strategic Planning Group, Inc. – The Retirement Report