Legal Question in Real Estate Law in California

The homestead exemption in California is automatic. You don't need to record any paperwork to claim it.

With that said, a recorded homestead does extend several protections to the declared homestead. A declared homestead limits the extent to which a subsequently recorded judgment lien, other than a judgment lien based on a judgment for child or spousal support, will attach to the declared homestead. When there is a declared homestead, a judgment lien will attach only to the surplus value of the property over the amount of the homestead exemption set forth in Code of Civil Procedure section 704.730 plus the amount of all liens and encumbrances on the declared homestead at the time the abstract of judgment is recorded to create the judgment lien. (Code Civ. Proc., � 704.950.)

Recordation of a declared homestead also provides an advantage for a judgment debtor at any future hearing in which a judgment creditor seeks to challenge the existence or amount of a homestead exemption in that the judgment creditor has the burden of proof at the hearing. (Code Civ. Proc., � 704.780 subd. (a)(1).) If no declaration was recorded, the burden would be on the judgment debtor to prove that the property sought to be levied was the homestead.

Finally, and importantly, if a homestead declaration is recorded prior to the operative date of any amendment to Code of Civil Procedure section 704.730 that increases the amount of the homestead exemption, the amount of a declared homestead exemption is increased by the same amount. If a judgment creditor has obtained a lien on a declared homestead prior to the operative date of any amendment increasing the exemption amount, the amount of the declared homestead exemption remains the amount in effect at the time the lien attached. (Code Civ. Proc., � 704.965.)

To answer you question more directly, you do not need to record a declaration of abandonment, and rerecord a declaration of homestead when you turn 65.

While I agree with Mr. Roach's comprehensive answer, I'd like to add a couple of thoughts. First, I'd say there are two kinds of homesteads in California -- automatic and declared -- with protections that overlap by about 70%. So, while it may be unnecessary to record a declaration of homestead, there may be some additional benefit, in some cases, to doing so.

Second, a homestead is not 100% protection against liens and claims, especially those which predate the recorded homestead.

Finally, I'd say that a recorded declaration of homestead might, in some cases, be a red flag to lenders and others with whom you're hoping to do business that you are anticipating some kind of financial difficulties -- possibly a large judgment against you -- in the near future, and are taking precautionary steps.