A Homestead Declaration is a legal document that is based on the homestead laws, which protect homeowners from loosing their entire home to creditors. The laws will protect (up to a certain amount) the value of the homes of the homeowners from creditors, property taxes, bankruptices, lawsuits, as well as any situations that may arise because of the death of the homeowner spouse. The amount of protection afforded by homestead laws varies from state to state.
Definition of Homestead Declaration.