Homestead Declaration FAQ

What is a Homestead Declaration?

A Homestead Declaration – sometimes switched to “Declaration of Homestead” – is a legal document in which homeowners take advantage of state statutes providing for the protection of families living in the homes. The statutes protecting a homestead will vary from state to state, but generally they help provide for a family’s protection against financial troubles in paying for the homestead and financial troubles as a result of the death of the head of the household. In short, homestead law can help you avoid losing your home to creditors.

Homestead Declarations can be very easy, simple, and straightforward. They are generally not difficult to fill out and file – and, once filed, generally do not require renewal in the years afterward.

The government already knows I’m a homeowner. What’s so different about a “Homestead”?

As a homeowner, you will be entitled to certain tax considerations simply due to the way the tax code is written. The advantages of filing your home as a “Homestead,” however, will be different. While the federal government may know that you’re a homeowner, filing your home as a “homestead” allows the legal system to see that you’re raising a family in that house. In certain states, this special “homestead” status then carries along certain legal protections because of the considerations of raising a family.

Why should I file a Homestead Declaration?

You may not need to. But if a Homestead Declaration allows you to take advantage of statewide protections for your family, you may find the small investment of time to be well worth the effort.

The specific statutes that offer protections to homesteads vary from state to state. It’s important for you to look up your own state’s laws for Homestead Declaration and see if it might be beneficial for you to do so.

Who doesn’t need to file Homestead Declarations?

If you already own a home and your state does not offer any special protections for a homestead, then there is no real need to file this declaration. Additionally, if you own a property that has no need or even grounds for this special protection (for example, if you own a rental property), you should not seek the benefits of running a homestead. It’s important to use common sense in determining whether or not you should file a Homestead Declaration.

What kind of protections are common under Homestead Declaration?

Although this information comes with the usual caveat that each state’s protection will vary, there are some common protections that you’ll see as a result of declaring your Homestead.

For example, there may be a “Homestead exemption law” in your state that protects you from creditors seeking to make your home part of your payment for a debt. Typically this exemption law will carry a specific number with it, so this exemption is limited based on the size of your property and on the size of the debt you’ve incurred to that specific creditor. (Note: if you’ve put your home up for collateral for a loan, and you don’t pay your bills, the Homestead exemption may then not apply and creditors will be able to go after your home.)

Another protection generally offered under homestead declaration relates to financial ruin. It may be required in some states to liquidate your assets for certain financial protections; if you have declared a Homestead, it may follow that you will not necessarily need to lose your home as a result of your financial situation.

For more information, be sure to check on your state’s own protections – those are the only protections that will ultimately matter to you and your Homestead.

What Homestead Declaration form should I download?

If you’re downloading a Homestead Declaration form from the Internet, you should make sure that you’re using the right one. Some variables exist in Homestead Declarations that you shouldn’t ignore. For example, a Homestead Declaration for Couples will differ from a Homestead Declaration for Single Persons.

Additionally, you should download only the form that is relevant to your individual state.

What is contained in a Homestead Declaration?

A Homestead Declaration will generally have the following provisions:

• Parties: Identifying the parties involved. You’ll identify who’s declaring the homestead, typically stating whether or not you are filing one as a couple or as a single individual.
• Property Location: Identifying the property being declared as a Homestead is important, so you’ll be expected to not only identify it but list its address as well.
• Declaration: This is the “meat” of the form, in essence the provision that makes it a lawful declaration.
• Signatures: Once you’ve signed this declaration, you’ll have to be able to demonstrate that the declaration you’ve made is truthful.

If you’re confused about how a Homestead Declaration will look, it is not difficult to find a sample form to view online.

When is a Homestead Declaration valid?

Once signed and filed. A Homestead Declaration carries legal weight, but the requirements for its validity are not subject to as many variables as a contract or legal agreement might be. Even so, it’s important that you fill out a Homestead Declaration fully and accurately.