Asset protection is important to save them from lawsuits and creditors. It is important to know about the laws that protect some types of assets and the steps you can take to protect your assets. Your family lawyer can also guide you through the necessary steps for protecting your assets. Here are some ways to protect your assets from creditors and lawsuits.
· Use Business Entities
It is essential to separate personal assets from business assets. If you do not take the necessary legal initiatives to build a separate business entity like a corporation or limited partnership, any minor dispute can result in a big loss.
· Use Retirement Accounts
Check the laws in your state to know how much protection is given to funds in retirement accounts. Unlimited asset protection is provided to ERISA-qualified retirement plans by Federal law. Additionally, in terms of bankruptcy, asset protection of up to 1 million dollars is provided in an IRA. Consult your attorney to determine if creditors can choose between federal and state exemption amounts.
· Homestead Exemptions
A lot of protection is provided to home equity in some states. According to this, if you go bankrupt, the law forbids courts from giving home equity to creditors. Whereas some states provide comparatively little home equity protection in case of bankruptcy. If your state offers a generous homestead exemption, invest extra principal in mortgage payments to protect funds.
· Tilting
Check how your house is tilted. If you and your partner own the house collectively as tenants in the entirety, both of you have an inseparable interest in the house. However, if only one of you is named as the owner, creditors cannot pressure the other spouse to sell their share of the house. Since the interest is undividable, this can assist in the protection of home equity in case the state law does not award enough homestead exemption.
· Life Insurance and Annuities
A few states offer considerable protection to assets in cash value life insurance policies and annuity balances. All states have different laws, so consult a licensed attorney in your state to know about specific exemptions.
If you are looking for professional estate law attorney Queens to protect your assets from creditors or lawsuits, reach out to Ledwidge & Associates, P.C. We are one of the leading estate planner Queens service providers with an experience of more than 20 years. Call us today to hire a professional estate planning attorney for your legal matters.
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