Montana Homestead Declaration
Protect up to $350,000 of equity in your primary residence from creditor claims. A Montana homestead declaration is one of the most powerful — and most overlooked — asset protection tools available to Montana homeowners. File once, and your home equity is shielded for as long as you live there.
What Is a Homestead Declaration?
Montana law allows homeowners to file a homestead declaration to protect up to $350,000 of equity in their primary residence from most creditor claims. Under MCA 70-32-104, this declaration creates a legal shield around your home — meaning if a creditor obtains a judgment against you, they generally cannot force the sale of your home to collect, as long as your equity falls within the protected amount.
This protection is NOT automatic. Unlike some states that provide a homestead exemption by default, Montana requires you to affirmatively file a homestead declaration with the clerk and recorder in the county where your property is located. Until you file, your home equity has zero homestead protection from creditors.
Many Montanans do not know this protection exists — or assume it applies automatically. It does not. Filing a homestead declaration is a simple, one-time step that can protect the single largest asset most families own. For homeowners in Bozeman, Missoula, Billings, Helena, and across rural Montana, this is one of the most cost-effective asset protection strategies available.
How Much Protection Do You Get?
Montana's homestead exemption protects up to $350,000 of equity in your primary residence. Equity means the difference between your home's market value and what you owe on the mortgage. Here is what that looks like practically for Montana homeowners:
Bozeman Area
Median home price ~$600K. With a $300K mortgage, you have ~$300K in equity — fully protected by the homestead declaration.
Billings Area
Median home price ~$350K. Even if your home is paid off, your entire equity is protected up to the $350K limit.
Rural Montana
Median home price ~$250K. Most rural homeowners have their full equity protected — often with room to spare as property values appreciate.
For most Montana homeowners, the $350,000 exemption covers their entire home equity. Even in higher-cost markets like Bozeman and Whitefish, the exemption provides substantial protection.
How to File a Montana Homestead Declaration
Filing a homestead declaration under MCA 70-32-104 is straightforward but must be done correctly to be enforceable.
Prepare the Declaration
Draft the homestead declaration document identifying the property by legal description, stating it is your primary residence, and declaring your intent to claim the homestead exemption under MCA 70-32-104.
Sign and Notarize
The homestead declaration must be signed by the homeowner and notarized. If the property is owned jointly by spouses, both should sign.
Record with the County
File the notarized declaration with the clerk and recorder in the county where the property is located. You will pay a small recording fee (typically $12 to $20 depending on the county).
Keep Proof of Recording
Retain the recorded copy with your important documents. The protection takes effect once the declaration is recorded. Include it with your estate planning documents for safekeeping.
Montana Will & Trust prepares your homestead declaration with the correct legal description, handles notarization through our remote online notarization service, and provides the document ready for recording at your county clerk and recorder's office.
What a Homestead Declaration Does NOT Protect Against
The homestead exemption is powerful, but it has important limitations. Your home remains subject to these claims regardless of a homestead declaration.
Mortgage or deed of trust
Your mortgage lender can still foreclose. The homestead exemption does not override a voluntary lien you placed on the property.
Property tax liens
Unpaid property taxes create a lien that takes priority over the homestead exemption. Your county can still pursue a tax lien sale.
Mechanic’s liens
Contractors and suppliers who performed work on your property can enforce a mechanic’s lien regardless of the homestead declaration.
IRS federal tax liens
Federal tax liens are not subject to state homestead exemptions. The IRS can place a lien on and potentially seize homestead property for unpaid federal taxes.
The homestead declaration protects against general creditor claims — credit card debt, medical bills, personal loans, and civil judgments. For these common debt types, the homestead exemption is highly effective.
Homestead Declaration as Part of Your Estate Plan
A homestead declaration works best as part of a comprehensive Montana estate plan. On its own, it protects your home equity from creditors during your lifetime. Combined with other estate planning tools, it becomes part of a layered strategy that protects your property both during your life and after your death.
Consider the full picture: a Transfer-on-Death deed ensures your home passes to your beneficiaries without probate. A will or trust governs the distribution of your broader estate. And a homestead declaration protects the property from creditors while you're alive. Together, these documents form a comprehensive property protection plan.
That's why Montana Will & Trust includes a homestead declaration in our Complete and Ranch & Land packages. We believe property protection should not be an afterthought — it should be built into every Montana estate plan from the start.
Protect Your Home with a Montana Homestead Declaration
A Montana Homestead Declaration is included in our Complete and Ranch & Land packages. Starting at $399.
Complete Your Montana Estate Plan
Montana Wills
Create a Montana-compliant last will and testament to name guardians, distribute assets, and simplify probate.
Montana Trusts
Avoid probate entirely and keep your estate private with a Montana revocable living trust.
TOD Deed
Pass your home, ranch, or land directly to beneficiaries without probate using a Transfer-on-Death Deed.
Montana Homestead Declaration FAQ
Common questions about filing a homestead declaration in Montana.