An easy way to protect ytour home from creditor claims

                      AN EASY WAY TO PROTECT YOUR HOME FROM CREDITOR CLAIMS

            Filing a homestead with the Registry of Deeds is a quick, easy and inexepnsive way to protect your home from creditor claims.  A homestead will not protect against claims filed prior to filing the homestead and it will not protect against monies due on your mortgage, for taxes, child support or monies due Mass Health.  The filing fee for a homestead is only $35.00.  A homestead declaration can be prepared by an attorney or an individual can prepare it without an attorney by using the forms available online.  A homestead protects the equity in your principal residence.  Ahomestead can be filed to protect equity in a home that is owned by a trust.  Unfortunately, it does not protect a second home or a vacation home.  To be valid, the declaration must be filed with respect to the home you make your residence.  You can only have a homestead on one home.

            In March, 2011, the homestead law was revised to provide some protection even if you do not file a declaration with the Registry of Deeds.  The new law provides homeowners with an automatic $125,000.00 homestead. Homeowners who do file obtain homestead protection in the amount of $500,000.00.  This means up to $500,000.00 of equity is protected against creditors.  The homeowner's spouse is also protected even if his or her name is not on the deed or the mortgage. 

               The homestead for seniors who are 62 years of age or older is $500,000.00 per ower meaning that a married couple who are both over 62 years of age now can protect $1,000,000.00 in equity.  If you have a homestead that was filed when you were not yet 62 years old and you are now 62 years old, you should re-file to ensure protection under this section providing additional coverage for individuals 62 years of age and older.  There is no limit on how many seniors can live together and claim the $500,000.00 homestead.  For example, if 4 individuals each 62 years of age or older live together in a home with $2,000,000.00 of equity all $2,000,000.00 of equity is protected from creditor's claims. 

            If you have not filed a homestead with the Registry of Deeds, you should file one.  If you do not know, if one if filed,  we can go online and find out.