LowellDeeds

The amount of the exemption provided by the Declaration of Homestead is being raised to $500,000. Chapter 218 of the Acts of 2004 was signed into law last week, but with the 90 day waiting period, the change does not become law until October 26, 2004. This amendment increases the exemption provided by both General Laws chapter 188, section 1 and chapter 188, section 1A (the so called "homestead for the elderly and disabled"). All existing homesteads will have the benefit of this increase, except when there is an intervening lien recorded. For example, if you record a homestead today with its $300,000 exemption, then have an attachment recorded against you tomorrow, the attachment will stay behind the $300,000 exemption and would not benefit from the increase. How the homestead operates is a complicated concept. I like to compare it to having a dog in your house: if an intruder wants to get in, he will, but more likely, when he hears the dog barking, he'll move to an easier target. Similarly, if a creditor finds a homestead on a property owned by a debtor, there might be a way for the creditor to bypass or pierce the homestead, but chances are the creditor won't spend a lot of time and effort trying to grab that property but will move onto another one that's not similarly protected.