New Hampshire homeowners will see significant changes to the state’s homestead exemption law beginning January 1, 2026. These updates are the most substantial expansion of homestead protections in decades and will provide considerably more asset protection for residents. Understanding these changes is essential for homeowners who want to protect their most valuable asset: their home.
Always consult an experienced estate planning attorney to ensure your plan is in line with all updated laws.
What Is the Homestead Exemption?
The homestead exemption is a legal protection that shields a portion of your home’s equity from unsecured creditors in the event of financial hardship, judgments, or bankruptcy. This protection allows homeowners to maintain housing stability even when facing significant debt or legal judgments. As part of comprehensive estate planning, homeowners should consider how the homestead exemption fits into their overall asset protection strategy.
Current Homestead Exemption Limits (Through December 31, 2025)
Under the current law that remains in effect through the end of 2025, New Hampshire provides a homestead exemption of $120,000 per person. For married couples who jointly own their home, this doubles to $240,000 in protected equity. While this protection has served New Hampshire homeowners for years, it hasn’t kept pace with the dramatic increase in home values across the state.
With median home prices in many New Hampshire communities now exceeding $400,000, the current exemption protects a smaller percentage of homeowner equity than it did when the law was established. This gap has left many middle-class homeowners vulnerable to creditor claims that could force home sales, even when substantial equity exists.
Major Changes Taking Effect January 1, 2026
The 2026 homestead exemption updates reflect the legislature’s recognition that home values have increased dramatically and that families need stronger protections to maintain housing stability.
Dramatic Increase in Exemption Amounts
The most significant change is the substantial increase in protected equity. Beginning January 1, 2026, the homestead exemption will increase to $400,000 per person. However, there’s an important caveat: the total exemption for all owners of a property cannot exceed $550,000, regardless of how many people hold ownership interests.
This represents more than a tripling of the current individual exemption and more than doubles the protection available to married couples. For a single homeowner, the new $400,000 exemption provides dramatically enhanced protection. For married couples who previously could protect up to $240,000 combined, the new $550,000 cap represents a substantial increase in protected equity.
Clearer Residency and Ownership Requirements
The new law clarifies and formalizes residency requirements that were previously established primarily through case law. Under the 2026 changes, homeowners must maintain the property as their primary residence continuously for 12 months to qualify for the homestead exemption. This 12-month continuous residency requirement creates a clear standard that homeowners can easily understand and meet.
Previously, ownership and occupancy were required, but the specific duration wasn’t codified in statute. The new law removes ambiguity by establishing a definitive timeframe.
Expanded Protection for Trust Beneficiaries
The 2026 law extends homestead exemption eligibility to trust beneficiaries residing in the home. Many New Hampshire residents hold their homes in trusts for estate planning purposes, and the new law ensures these homeowners receive the same protections as those who hold title directly in their individual names.
This change should be carefully considered when creating a trust, and means you should review any current trust terms with your estate planning attorney for a possible amendment.
Rollover Provisions for Moving Homeowners
The 2026 law includes rollover provisions that allow certain homeowners to maintain their exemption when purchasing a new primary residence. This protects homeowners during the vulnerable transition period when selling one home and purchasing another, ensuring that timing gaps between transactions don’t eliminate homestead protection as long as they reinvest in the new primary residence within six (6) months.
Limitations on Pre-Existing Debt Claims
The updated law provides some limitations on how pre-existing debts can be exceptions to the homestead exemption. While the exemption has always contained exceptions for certain priority debts like mortgages, property taxes, mechanics’ liens, and HOA or condominium assessments, the new law clarifies how other pre-existing debts interact with the exemption.
These limitations help ensure that the homestead exemption provides meaningful protection rather than being easily circumvented by creditors with claims that predate the establishment of the homestead. However, the priority exceptions remain in place, as the homestead exemption will not protect your home from foreclosure for mortgage default, tax liens, or valid mechanics’ liens.
Procedural Requirements Remain Consistent
Despite the substantial changes to exemption amounts and eligibility criteria, the procedural requirements for claiming the homestead exemption remain largely unchanged. Under RSA 529:20-a, homeowners must notify both the sheriff and judgment creditors when claiming the exemption in certain circumstances. The same notification procedures apply under the new law, though the updated exemption amounts will be reflected in any notices or claims.
Integrating Homestead Protection Into Your Estate Plan
The enhanced homestead exemption should be considered as part of your comprehensive estate planning strategy. As estate planning lawyers, we understand that protecting your home is often a primary concern when developing plans for asset protection, probate avoidance, and wealth transfer to future generations.
If you hold your home in a trust, the 2026 changes make it even more important to review your estate planning documents with an experienced estate planning attorney. Ensuring that your trust is properly structured to take advantage of the homestead exemption while achieving your other estate planning goals requires careful coordination.
For families with substantial home equity, the increased protection may influence decisions about asset titling, trust funding, and overall estate structure. An estate planning lawyer can help you understand how these changes interact with other aspects of your plan, including Medicaid planning, tax considerations, and probate avoidance strategies.
Planning for the Transition With Your Estate Planning Attorney
As we approach January 1, 2026, New Hampshire homeowners with substantial equity should review their overall asset protection strategy with their lawyers in light of the enhanced homestead protections. Those who hold property in trusts should verify that their trust structure allows them to take advantage of the expanded eligibility for trust beneficiaries.
An attorney can review your existing documents and recommend any necessary updates to ensure you receive maximum protection under the new law. At Roark & Mansur Law, our experienced New Hampshire estate planning attorneys help clients understand how the homestead exemption fits into their comprehensive estate plan and overall asset protection strategy.
Whether you’re establishing a new estate plan, updating existing trust documents, facing financial difficulties, or simply want to ensure your family’s home receives maximum protection under the 2026 changes, our team is here to help. We provide personalized legal counsel tailored to your unique circumstances and goals.
Contact Roark & Mansur Law today to schedule a consultation and learn how the 2026 homestead exemption changes affect your estate plan and asset protection strategy.