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The New Massachusetts Homestead ActTrust & Estate Planning
Posted in on March 14, 2014
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, suit 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.