Homestead Protection

The Massachusetts Homestead Law: $500,000 In Asset Protection

Buying a home, for most, is the single biggest investment homeowners will make in their lifetime. But what happens if you are involved in a car accident or run into serious financial trouble, and creditors are knocking on your door, threatening to place a lien on your home? A Massachusetts Homestead Act declaration can protect your single biggest asset in these situations. A Massachusetts Homestead Declaration enables all Massachusetts homeowners to protect up to $500,000 in equity from certain claims of creditors. It is one of the most overlooked and cost-effective asset protection devices in Massachusetts.

As part of every transaction we handle, we offer borrowers the option to record a Declaration of Homestead on their property. We charge a nominal fee for this service.


  • While typically declared by the family member with the most income, an estate of homestead benefits the entire family.
  • The Massachusetts Homestead applies only to the principal residence. Investment properties or vacation homes are not covered.
  • The Massachusetts Homestead does not shield borrowers from mortgage debt used to purchase property, first mortgage refinances, federal and state taxes and liens, alimony and child support. A new homestead should be recorded after each refinance.

The Massachusetts Legislature is presently considering overhauling the homestead law in Massachusetts, including automatic coverage for all home owners. Please read our article on the changes.