One of the most popular and widely used exemptions is the Homestead exemption. In this case, it is possible to make your home out of reach for creditors. However, many states put a limit on the amount of your home that is exempt over a certain value.
Protecting your home is crucial when dealing with liens or bankruptcy. For this reason it is important to understand the homestead exemption so that you are able to protect your home from creditors. In Minnesota, the homestead may include any quantity of land under 160 acres. Also, the exemption may not exceed $300,000, or if the homestead is used primarily for agricultural purposes, $750,000. If your homestead does not exceed the value or acre limits, it may be beneficial to pay off the mortgages on the property. If your home exceeds the Minnesota exemption limits, it may be better to take out another mortgage on the home from the business’s holding entity.