A homestead exemption can benefit homeowners if one spouse in a twoincome household dies. The exemption includes land attached to the primary dwelling place.The exemption excludes prior liens. This can provide asset protection from creditors for at least some of house's value. An Exemption from real estate taxes shall be allowed. According to Kentucky's Constitution, property owners who are 65 or older are eligible to receive a homestead exemption. Applicant's name must be on the deed and the property must be their primary residence. An application for the homestead exemption is available on DOR's website. Enter the additional amount you want to have withheld on line 6.