What a homestead declaration is:

A document you execute and file with the Registry of Deeds to protect your principal residence from creditors. Depending on your age and circumstances, it can provide you and your spouse anywhere from $500,000 to $1,000,000 worth of protection.

The problems a homestead declaration avoids:

• Your creditors “attaching” your home to collect your debt
• Your creditors forcing you to sell your home so they can collect your debt
• Your creditors forcing your estate to sell your home to collect a debt possibly displacing your spouse and children

How a homestead declaration protects you:

Whether on account of being sued, serious medical problems, or significant financial set-backs, anyone can go into significant debt and fall into the hands of creditors. Under state law, a homestead declaration ensures that at least $500,000 of your home equity is exempt from collection attempts while you are alive or upon your death. In some circumstances this could allow you to keep your home.