By authorizing a lawful document referred to as a homestead affirmation, Montanans can safeguard as much as $409,450 (2025) in equity of their home against many unprotected financial debts.

Equity is the difference in between what an owner owes on a home loan and the current value of the home. As an example, if a home owner documents a homestead declaration and after that later on incurs frustrating financial obligations such as clinical expenses, the owner has protection approximately $409,450 (2025) in equity of the home.

Unsafe financial debt is a responsibility or debt without particular property like a house or vehicle, working as security for settlement of the financial debt. Examples of unsafe fundings are clinical bills, personal lendings, trainee lendings, and credit cards. This MontGuide answers frequently asked questions concerning a Montana homestead declaration.

How is ‘homestead’ specified in Montana?Read here montana nr 1 At our site

A homestead is the house an individual lives in and the arrive on which it stands. The home needs to be a person’s primary house to be eligible for a homestead affirmation. A mobile home or produced home is likewise qualified for a homestead declaration. The owner does not need to have the land under which the
mobile or manufactured home is set. However, the owner has to stay in the mobile or manufactured home to get a homestead affirmation.

The term homestead likewise consists of any type of enhancements legally defined as ‘appurtenances’ to the land, such as a fencing, different garage, and wells made use of for residential water use. Nevertheless, the improvements can not surpass the quantity of the homestead statement exemption of $409,450 (2025 ). Decor and appliances are not qualified for the homestead affirmation.

How is the annual boost in the Montana homestead declaration computed?

The legal value of the residential or commercial property for figuring the equity held by the owner is the buck value showing up on the current county analysis at the region treasurer’s office. The 67th Montana Legislature passed a statute needing the homestead affirmation to raise by four percent every fiscal year after 2021. In 2025, the homestead exception is $409,450, $425,827 in 2026, and $442,659 in 2027.

Do I require to refile my Montana homestead declaration if I filed one before May 10, 2021?

No. The Montana legislature supplied increases in the homestead statement with the initial defense of $40,000. Several years later on, the quantity was raised to $60,000; then to $100,000, $250,000, and $350,000. As a result of the continuing adjustments in the homestead declaration, one does
not require to list the dollar amount on the type. The exception allowed is the quantity admitted the year one benefits from the affirmation to shield a home from financial institutions’ cases.

Suppose the equity in my home exceeds the Montana homestead exemption?

If the worth of equity in a home goes beyond $409,450 (2025 ), lenders might request the district court judge to divide (dividing) the land and offer part or all of it. The individual that submitted the homestead declaration has defense for the very first $409,450 (2025) in equity of the sale earnings. These profits are exempt for 18 months from unsecured creditor’s insurance claims.

Instance: Joe owns a house with a worth of $300,000 and a $50,000 mortgage equilibrium. Joe’s homestead declaration safeguards only the $250,000 he has in equity ($300,000 value – $50,000 home loan = $250,000) although the maximum homestead statement exception is $409,450 (2025 ).

Instance – Ownership: Karen possesses a home with a worth of $425,000 with a home mortgage equilibrium of $10,000. Her equity in the home is $415,000 ($425,000 – $10,000 home loan = $415,000). Karen’s homestead affirmation just safeguards up to $409,450 (2025) of her equity in the home. The remaining quantity over the equity she has in the home ($5,550) is offered to unprotected creditor’s cases. Creditors could compel the sale of Karen’s home to recover component or all of the debt she owes them.

Does the method residential property is entitled effect the Montana homestead declaration?

Montanans commonly possess property titled in among 3 methods: sole ownership, joint occupancy with right of survivorship or renters in common. Over the last few years, some Montanans have placed their home in revocable depends on.

If an owner has the title in single possession, the proprietor has the complete $409,450 (2025) homestead exception.

If a person is a co-owner of real property entitled as a tenantin-common, each has a wholehearted passion in the property as created on the act or otherwise symmetrical if not especially created otherwise. If 2 people title their home as tenantsin-common, each possesses one-half of the undivided passion in the home. Jim has 50 percent ownership and Sally, as the other tenant-in-common, has the other half ownership.

A deed can reveal any percentage, such as Jim with 75 percent ownership and Sally with 25 percent or Jim with 60 percent ownership and Sally with 40 percent. When a tenant-in-common documents a homestead affirmation, the exemption amount is symmetrical to the undistracted interest each possesses.

Example – Renters in Common: Debbie and Mike own a home as tenants-in-common. The value of the home is $500,000. They have a $50,000 remaining balance on the home loan. Their incorporated equity in the home is $450,000. Debbie has an undivided rate of interest of fifty percent ($225,000) and Mike has a concentrated interest of half ($225,000). ($500,000 worth – $50,000 continuing to be balance on financing = $450,000 incorporated equity – 2 = $225,000). Mike and
Debbie can each file a homestead statement for their particular concentrated interest of fifty percent.

If the title remains in joint tenancy with right of survivorship, then any one of the joint owners have the full exception of $409,450 (2025 ). However, all owners should sign the homestead affirmation, deeds, and any type of relevant residential or commercial property documents such as a home mortgage in the same way.

Instance – Joint Occupancy with Right of Survivorship: Heather and Noah own a home with a worth of $425,000 as joint lessees with right of survivorship. They authorized the act and title to their home as Heather Ann Mason and Noah Lee Mason. They authorized the homestead declaration the same way. They have a $50,000 continuing to be balance on the home mortgage. Their joint equity in the home is $375,000 to make sure that is the quantity of equity either Heather or Noah can secure versus unprotected lender insurance claims.

If the title remains in the name of a revocable depend on the settlors (those who establish the trust) have the full exception of $409,450 (2025 ). Settlors are the ones that place assets in the name of the trust fund. The settlors could consist of a declaration in their affirmation phrasing to the list below result: We are settlors of a revocable trust fund, and we moved the defined property to that trust.

Example – Revocable Depend on: As part of their estate plan, Cindy and Tom have placed their home in the name of their revocable trust. The name they picked for the trust fund is: The Cindy Brown and Tom Brown Revocable trust fund developed June 17, 2025. The value of the home in the name of the trust is $500,000. Since they have no mortgage, their equity in the home is $500,000. The quantity of equity protection they have is the maximum exemption of $409,450 (2025 ).

If a couple is married, should both authorize the Montana homestead declaration?

Yes. Under Montana property regulation, a spouse obtains a passion in property at marital relationship unless an authorized premarital agreement contract exists. For more details, see MSU Extension MontGuide, Premarital Agreement Agreements in Montana: Financial and Legal Aspects or request a copy from a local MSU Extension workplace.

Even though a partner’s name might not appear on the act or various other papers of title, the partner has a legal interest in the building as a result of the marriage. For this reason, both spouses need to authorize the homestead declaration. If one partner does not sign, that spouse’s passion in the residential property is not exempt from unsecured lender’s insurance claims.

Recap

If a Montana homeowner files a homestead affirmation, as much as $409,450 (2025) of the house owner’s equity in the home, mobile home or manufactured home can be shielded versus most unsafe creditor’s claims. The owner completes, signs, and has the Montana homestead statement notarized. The owner then submits the paper in the office of the clerk and recorder in the area in which the home is found. If married, both spouses need to sign the declaration and literally stay in the home.