MSU Extension Recommends Filing Homestead Declaration To Protect Value Of Home
Montana State University Extension has a MontGuide regarding homestead declaration and the benefits it gives homeowners.
“Make a New Year’s resolution to protect your home’s value,” said Marsha Goetting, MSU Extension family economics specialist. “By signing and filing a legal document known as a homestead declaration, Montanans can protect their property up to $250,000 in value against a creditor’s claims. As an example, a wife discovered her husband had accumulated $15,000 in gambling debt. She was relieved when the attorney told her the homestead declaration would protect the $15,000 equity in the house.”
A homestead includes a house a person lives in and the land on which it sits. A mobile home or manufactured home where the owners do not own the land is also considered a homestead. The property must be a person’s primary residence for it to be eligible for a homestead declaration, Goetting explained.
Even though a spouse may not be listed on the deed or other documents of title or may not have directly contributed money to pay for the property, the spouse has a legal interest in the property because of the marriage, Goetting added.
“Therefore, both spouses should sign the homestead declaration. The interest of a spouse who does not sign is not exempt,” she said.
Montana has no standard homestead declaration form, although many county clerk and recorders have examples.
“The Senior and Long-Term Care Division provides a homestead declaration form at our website,” said Katy Lovell, Montana Legal Developer with Aging Services. “After the homestead declaration form is completed, signed and notarized, it should be filed with the clerk and recorder in the county in which the home or mobile home is located.”
More information can be found in the MontGuide “Using a Homestead Declaration to Protect Your Home from Creditors” at http://store. msuextension.org/publications/ FamilyFinancialManagement/ MT199815HR.pdf. Printed copies are also available from county or reservation Extension offices.
