A homestead or homestead estate generally includes a house, outbuildings, and the adjoining land owned and occupied by a person or family as a primary residence.
Many states—but not all—have laws that protect a person’s homestead from forced sale for the satisfaction (payment) of debts—at least up to a certain amount of the homestead’s value. These laws may be referred to as homestead exemptions or homestead laws and may be located in a state’s constitution or in its statutes.
The homestead exemption exists to provide a secure home for the family against creditors. The exemption is liberally construed to further its purposes. No specific writing is needed to claim a homestead exemption, but instead merely proof of concurrent usage and intent on the part of the owner to claim the land as a homestead.
In some states the constitutional family homestead exemption applies to the entire family, and not to either spouse individually. Therefore, so long as real property is a family homestead due to one spouse's intention and use, that property is protected by the homestead exemption, unless full abandonment has been pleaded and proved. Once a property has been established as a homestead, the property remains exempt unless it ceases to be a homestead due to abandonment, alienation, or death.
Abandonment of a homestead occurs when the homestead claimant ceases to use the property and intends not to use it as a home again. Anyone asserting abandonment of a homestead has the burden of proving it by competent evidence.
In Utah, the homestead exemption is designed to protect a portion of a person's home from being forcibly sold to satisfy debts. This exemption is found in Utah's statutes, specifically under Utah Code Ann. § 78B-5-503. The law provides that an individual may claim a homestead exemption for a primary residence, which includes a dwelling, mobile home, or water rights, up to a value of $42,700 for an individual and $85,400 for a married couple or a person with dependents. The exemption amount is subject to change as it is periodically adjusted for inflation. The homestead exemption in Utah is automatically applied; no specific writing is required to claim it, but the owner must demonstrate the intent to use the property as a primary residence. The exemption applies to the entire family and not just to one spouse. However, the exemption can be lost if the property is abandoned, which means the owner must cease to use the property as a home and have no intention to return. The burden of proving abandonment lies with the party asserting it. It's important to note that the homestead exemption does not protect against all types of debts, such as those for taxes, mortgages, mechanics' liens, or debts contracted for the purchase of the homestead.