REPORT FROM COUNSEL
WINTER 2004/2005 ISSUE
By Jeffrey M. Schlossberg
On October 26, 2004 Massachusetts amended the homestead statute. The homestead exemption, which has been increased to $500,000, protects the equity in your home or principal residence and is simple to prepare and file. Upon filing the homestead, you are protected against the claims of subsequent creditors against the equity in your home to the extent of $500,000. As always, there are exceptions, for example, certain taxes, prior debts, alimony or child support. The exemptions for the elderly (age 62 and over) and disabled individuals have also been increased to $500,000. For those individuals, each spouse is entitled to $500,000 or $1,000,000 as a couple, versus the regular homestead where only one person per family is entitled to a homestead. In bankruptcy, the homestead may even be effective against liens created prior to filing the homestead. Most times if you have refinanced your property you will have discharged your homestead and a new homestead will now need to be recorded You must own your home to get the homestead protection (it cannot be owned by a realty trust). We urge all of our clients to verify that they have availed themselves of the homestead protection.