Homestead Exemption

" Where no declaration of homestead has been recorded, there is an automatic homestead exemption in the amount of $125,000. An estate of homestead can be declared in the amount of $500,000 by one or more owners of a home or one who occupies or intends to occupy the home as a principal residence. The estate is exempt from attachment, levy on execution and sale for payment of debts with limited exceptions. There are conditions and calculations for exemption based on multiple owners and tenants. M.G.L. c. 188, §1; M.G.L. c. 188, §3.

If there are two owners over the age of 62 or who are disabled, both may file for the $500,000 homestead estate for a total of $1,000,000 in protection. M.G.L. c. 188, §2. There are specified calculations for when only one of the owners is over the age of 62 or disabled. M.G.L. c. 188, §1."

There have been no updates in the statute governing the Homestead Exemption, but there has been recently decided case law from the Massachusetts Appeals Court regarding the issue:

In 2021, the Massachusetts Appeals Court ruled that the Homestead Exemption does not prohibit placing a lien on a property protected by a homestead declaration in circumstances in which the lien is subject to the homestead estate. Accordingly, a judgment creditor may levy on an execution upon property protected by a declaration of homestead and then suspend any further action to collect on the execution until the homestead has lapsed or the homeowner's equity in the home exceeds the amount protected by the homestead exemption. Hartog, Baer & Hand, A.P.C. v. Clarke, 99 Mass. App. Ct. 460 (2021).