I am happy to report that the long awaited overhaul of the Massachusetts Homestead Act is one step closer to becoming reality. While there are several important changes in the current proposal being debated on Beacon Hill, the most significant change is the creation of an automatic level of protection. Currently, unless you file a Declaration of Homestead at the Registry of Deeds the equity in your home is not protected. Under the new proposal, every homeowner would be granted this automatic protection of up to $125,000.00 of equity in one’s home without the need of filing any Declaration at the Registry of Deeds. As is the case now, if you choose to file a Declaration of Homestead at the Registry of Deeds this would this would allow you to obtain higher levels of protection, $500,000.00 for the typical homeowner and $600,000.00 if you qualify as disabled or are over the age of 62. In addition to this significant change, the new Act would eliminate the confusion that has developed over the years due to the typical language you see in a mortgage that terminates a previously filed Declaration of Homestead, allow transfers by family members or tenants in common without the need of filing a new Declaration of Homestead and allow beneficiaries of realty trust to exercise the protection of the Homestead Act. It is anticipated that the bill when it passes will contain the necessary language making these changes retroactive to all homeowners in addition to previously filed Declaration of Homesteads meaning no new filing is required.