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 to creditors. Under Illinois law, homeowners are entitled to an exemption of up to $15,000 of the equity in their home ($30,000 for a married couple filing jointly) from judgment, creditor claims, and bankruptcy. This means that this amount is protected and cannot be used to satisfy most types of debts. The Illinois Homestead Exemption is automatically applied; no specific action or documentation is required to claim it beyond proving that the property in question is the owner's primary residence and that they intend to use it as such. The exemption applies to a house, outbuildings, and the adjoining land. It is important to note that the exemption does not protect against all types of debts; for example, it does not prevent foreclosure by a mortgage lender for unpaid mortgage debts. Additionally, the exemption may not apply if the property is abandoned, which means the homeowner must not only cease using the property as a primary residence but also have the intention not to return.