Homestead Exemption Law and Legal Definition
Homestead exemption is a law designed to protect the value of a home from property taxes and creditors following the death of a homeowner spouse. It aims to provide shelter for the surviving spouse while preventing the forced sale of a home to meet creditor obligations and property taxes. Homestead protection is extended to every person in the U.S or to any natural person regardless of marital status or lack of dependents. It is an automatic benefit in most of U.S. states and one can a file a claim where it is not automatic. Most homestead exemptions use a monetary value to determine property tax protection by implementing a progressive-style tax to home value in order to assure that homes with lower assessed value benefit the most from the exemption.
