Earlier this year, Governor Patrick signed into law a comprehensive revision of the Massachusetts homestead protection law.
The previous law, M.G.L. c. 188, protected up to $500,000 of equity in a primary residence from creditors upon recording a declaration of homestead, but contained several confusing provisions that sometimes disadvantaged homeowners.
Under the new law, every Massachusetts homeowner will automatically receive $125,000 of creditor protection, regardless of whether they file homestead declaration. Homeowners who file a declaration of homestead will continue to receive $500,000 of creditor protection. Moreover, the rules for filing a homestead declaration clarify the following:
The new Homestead Legislation went into effect on March 16, 2011.