A homestead or homestead estate generally includes a house, outbuildings, and the adjoining land owned and occupied by a person or family as a primary residence.

Many states—but not all—have laws that protect a person’s homestead from forced sale for the satisfaction (payment) of debts—at least up to a certain amount of the homestead’s value. These laws may be referred to as homestead exemptions or homestead laws and may be located in a state’s constitution or in its statutes.

The homestead exemption exists to provide a secure home for the family against creditors. The exemption is liberally construed to further its purposes. No specific writing is needed to claim a homestead exemption, but instead merely proof of concurrent usage and intent on the part of the owner to claim the land as a homestead.

In some states the constitutional family homestead exemption applies to the entire family, and not to either spouse individually. Therefore, so long as real property is a family homestead due to one spouse's intention and use, that property is protected by the homestead exemption, unless full abandonment has been pleaded and proved. Once a property has been established as a homestead, the property remains exempt unless it ceases to be a homestead due to abandonment, alienation, or death.

Abandonment of a homestead occurs when the homestead claimant ceases to use the property and intends not to use it as a home again. Anyone asserting abandonment of a homestead has the burden of proving it by competent evidence.

In Illinois, the homestead exemption is a legal provision designed to protect homeowners from losing their primary residence in the event of financial distress or bankruptcy. Under Illinois law, an individual can claim a homestead exemption on their dwelling and contiguous land, with certain limitations. As of the knowledge cutoff in 2023, the Illinois Homestead Exemption allows an individual homeowner to exempt up to $15,000 of equity in their home or other property covered by the homestead exemption. For a married couple, this amount can be doubled to $30,000 when both spouses have an ownership interest in the property. The exemption applies to the equity in the property, which is the difference between the property's value and the outstanding balance of any mortgage or other liens on the property. The homestead exemption in Illinois is automatically applied; no specific writing is required to claim it, but the homeowner must demonstrate the intent to use the property as a primary residence. The exemption continues to protect the property unless there is evidence of abandonment, alienation, or death of the homeowner. If a creditor claims that the homestead has been abandoned, the burden of proof lies with the creditor to demonstrate this abandonment through competent evidence.