A homestead is a house, outbuildings and adjoining land owned by a person or a family and used as a residence.
Homesteads may enjoy an exemption, which prevents creditors from being paid off from a debtor's homestead, and also includes exemptions from property taxes and from the death of the homeowner's spouse.
State laws regarding the homestead exemption vary widely. Most states have limits on the amount of exemption a debtor is entitled to, such as $20,000, but a few states have no limits at all, exempting the entire homestead of the homeowner for debt service. Other states have limits that depend on the size and type of property or the age of the property owner.
See also: Homestead Act
[Last updated in March of 2022 by the Wex Definitions Team]