The New Massachusetts Homestead Act

On March 16, 2011 a new Massachusetts Homestead Act (Homestead Act) went into effect, the revised Homestead Act affords even greater protection for property owners.

A "Declaration of Estate of Homestead" is a legal document filed at the registry of deeds in the county in which a residential house exists that informs the public that the homeowner is asserting his rights to protect the equity in his home from subsequent creditors. Upon filing a Declaration of Homestead your primary residence is protected against subsequent attachment, suite or bankruptcy up to Five Hundred Thousand Dollars ($500,000.00) of equity per residence. Debt not covered by a Declaration of Homestead include purchase money mortgages, tax obligations and child or spousal support obligations.

The New Homestead Act has also opened several estate planning opportunities.