New Homestead Law

Under the new law all homes are automatically protected for $125k for those who don’t file a formal Declaration of Homestead.

From March 19th Lowell Sun – James Hartounian (real estate, estate planning and business law attorney in Billerica MA)

Though prior existing individual homestead declarations do not require new filings, do not assume this will automatically apply to a property owned in trust.  Consult with a real estate lawyer about any questions dealing with trust property

Re an old age question – The proceeds from the sale of a principal residence or the insurance proceeds from a principal residence that suffers a casualty loss, are protected by the homestead n order to purchase a new principal residence or repair a damaged one.  The proceeds from a sale are protected for the period of one year from sale of the current principal residence.  Insurance proceeds are protected for a 2 year period from receipt of the proceeds.

Which spouse files Homestead? – Both spouses who have an ownership interest in the principal residence sign the Declaration of Homestead.  In addition, the declaration must identify each person receiving homestead protection, including the name of a spouse who may not be an owner.

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