How Do I Protect My Home From Creditor Claims in Massachusetts?
Full Question:
Answer:
Homestead laws are designed to protect small individual property owners, such as homeowners, from the everchanging economic climate of the United States. Often when the economy changes, small property owners are unable to meet the demands of their creditors. Homestead laws allow an individual to register a portion of his real and personal property as "homestead," thereby making that portion of the individual's estate off-limits to most creditors. The idea behind these homestead laws is the preservation of the family farm, home, or other assets in the face of severe economic conditions.
In Massachusetts, a “Declaration of Estate of Homestead" form is filed at the Registry of Deeds in the county where the property is located, referencing the title/deed to the property. It allows homeowners in Massachusetts to protect their property up to five hundred thousand dollars ($500,000) of the value of their primary residence, per family.
All Homesteads must be filed in the county in which the residence is located. To acquire a claim of Homestead for a mobile home, you must file at the city or town clerk’s office in the city or town in which the mobile home is located. Be sure the form is filled out completely and has been properly notarized, and remember to enclose a check for the proper recording fee with the Homestead form. The check should be made payable to the Commonwealth of Massachusetts.
Please see:
http://www.sec.state.ma.us/rod/rodhom/homidx.htm
Please see the following MA statutes:
G.L.c. 188, § 1. Right to acquire homestead; exemptions; definitions.
Section 1. An estate of homestead to the extent $500,000 in the, land
and buildings may be acquired pursuant to this chapter by an owner or
owners of a home or one or all who rightfully possess the premise by
lease or otherwise and who occupy or intend to occupy said home as a
principal residence. Said estate shall be exempt from the laws of
conveyance, descent, devise, attachment, levy on execution and sale for
payment of debts or legacies except in the following cases:
(1) sale for taxes;
(2) for a debt contracted prior to the acquisition of said estate of
homestead;
(3) for a debt contracted for the purchase of said home;
(4) upon an execution issued from the probate court to enforce its
judgment that a spouse pay a certain amount weekly or otherwise for the
support of a spouse or minor children;
(5) where buildings on land not owned by the owner of a homestead
estate are attached, levied upon or sold for the ground rent of the lot
whereon they stand;
(6) upon an execution issued from a court of competent jurisdiction
to enforce its judgment based upon fraud, mistake, duress, undue
influence or lack of capacity.
For the purposes of this chapter, an owner of a home shall include a
sole owner, joint tenant, tenant by the entirety or tenant in common;
provided, that only one owner may acquire an estate of homestead in any
such home for the benefit of his family; and provided further, that an
estate of homestead may be acquired on only one principal residence for
the benefit of a family. For the purposes of this chapter, the word
"family" shall include either a parent and child or children, a husband
and wife and their children, if any, or a sole owner.
G.L.c. 188, § 7. Termination of estate of homestead.
Section 7. An estate of homestead created under section two may be
terminated during the lifetime of the owner by either of the following
methods:- (1) a deed conveying the property in which an estate of
homestead exists, signed by the owner and the owner's spouse, if any,
which does not specifically reserve said estate of homestead; or by (2) a
release of the estate of homestead, duly signed, sealed and acknowledged
by the owner and the owner's spouse, if any, and recorded in the registry
of deeds for the county or district in which the property is located.
A deed reserving said estate of homestead shall convey, according
to its terms, any title or interest in the property beyond the estate of
homestead.
