New Massachusetts Homestead Law

Governor Patrick has just signed into law a new bill which clarifies and improves the Homestead protections afforded to Massachusetts homeowners. The new bill provides an automatic protection of up to $125,000.00 of equity in a primary residence against claims of most creditors. Formerly, Homestead protection was available only to those homeowners who filed a Declaration of Homestead at the Registry of Deeds. Under the old law, the filing of a Declaration of Homestead protected up to $500,000.00 of equity against claims of creditors. This $500,000.00 protection is still available by filing a Declaration of Homestead, but even without a filing, you are now automatically protected up to $125,000.00. In addition, the new law clarifies that the Homestead protection remains intact if the property is conveyed to another family member, or to a trust for estate planning purposes, or if you refinance your home mortgage. This long-overdue and highly welcomed law goes into effect in mid-March.