Legal Question in Real Estate Law in California

The homestead propection is automatic in California; you do not have to file anything anymore. But your mother-in-law does not live in the home so why should she be elgible. I do not know if you get the full amount of the protection or only half of the dollar amount.

Unless Mr. Shers is aware of some very recent development, I'd think Code of Civil Procedure sections 704.910 through 704.995, providing for a declared homestead in addition to the so-called "automatic" homestead, are alive and well and semi-useful.

California has both an "automatic" homestead, for which no application, filing or recordation is necessary (or for that matter, available), and a declared homestead. The protection afforded by each is (a) partly overlapping, (b) partly additional, and (c) in any event, incomplete. Since the two provide somewhat different protection, it is still worthwhile for many folks to go ahead and declare homestead. A declared homestead does NOT give any protection against voluntary liens such as home mortgages. Its greatest value is protection against judgments.

There are two main requirements: (1) the homesteaded property must be your residence; and (2) you or your spouse must have some equity interest in the property, but even a long-term lease may qualify.

So, you and your spouse are qualified since you meet both the residency and ownership tests, and the two of you can record a spouses' declaration of homestead based on your half interest, but your mother-in-law does not meet the residency test and she cannot declare homestead on this property at all.