Grab RSS Feed...By Kiley Black
There are some basic questions which we get asked every day about the Homestead Act. There is quite a bit of confusion out there regarding Homesteading and if you should or should not pursue a MA declaration of homestead.
An Estate of Homestead is a type of protection for your residence. The document is called a “Declaration of Estate of Homestead”. It allows homeowners in Massachusetts to protect their property up to five hundred thousand dollars of the value of the residence, per family. At Black and Buono, we will provide you a Declarations of Homestead for no additional fee.
Many ask how exactly this protects them. When you file a declaration of Homestead, your home which should be your principal residence, is protected against an attachment or levy. Therefore, you would not have to sell your home to satisfy debts to the extent of five hundred thousand dollars per residence, per family. The term “Family” in this law constitutes either parents or children, or if you own your home alone, a single owner of the home. In simple terms, if you get sued as a homeowner, you home is protected up to $500,000.
There are, however, certain situations even Homesteading cannot protect you from. These include Federal, state and local taxes, assessments, claims, and liens; mortgages used to purchase the residence; an execution issued from the Probate Court to enforce a spouse to pay for the support of a spouse or children; buildings on land not owned by the owner of a Homestead estate which have attachments or a levy, or are sold; upon an execution issued from a court based upon fraud, mistake, duress, undue influence or lack of capacity; debts contracted prior to the acquisition of the homestead.
At Black and Buono we understand that the Homestead Act is confusing and we offer counsel in regards to homesteading and if it is right for you. You should never make a financial decision if you are confused or unsure. Always consult with a real estate attorney if you have any questions. We are here to help, contact us today.
