In this blog post, you will discover:
- The most effective ways to protect your assets from lawsuits
- The most effective ways to protect assets from stock market crashes
- The best ways to limit exposure or protect assets from taxes
A negligence lawsuit, such as an auto accident or a slip and fall at a business, can put your assets at risk. Additionally, bad debt lawsuits are a common type of lawsuit that puts assets at risk. An important part of Asset Protection Planning is making sure all of your personal assets are protected from any type of lawsuit.
What Are The Most Effective Ways To Protect My Assets From Lawsuits In Texas?
Texas is the most debtor protection state in the country. There are certain asset protection provisions in our State Constitution.
Homestead and Statutory Exemptions in Texas
- Texas exempts the entire homestead – Constitutional protection
- Rural homestead – up to 200 acres
- Urban homestead – one or more contiguous lots up to 10 acres
- Texas exempts personal property up to a value of $100,000 for a family or $50,000 for a single adult
- Texas doesn’t allow the forced sale of specific personal property:
- Home furnishings, including family heirlooms
- Farming or ranching vehicles and implements
- Tools, equipment, books, boats & motor vehicles, used in a trade or profession
- Jewelry, up to 25% of the $100,000/$50,000 limit
- Two firearms
- Athletic and sporting equipment, including bicycles
- A motor vehicle for each family member who has a driver’s license or who is not licensed but is dependent upon another person to drive the vehicle for him
- Two horses, mules or donkeys, and a saddle, blanket, and bridle for each;
- Twelve head of cattle;
- Sixty head of other livestock;
- 120 fowl; and
- household pets
- Life Insurance, Annuities, and 529 college funds are exempt from judgment creditors
Is It Possible To Protect My Stock And Other Investment Assets From Market Crashes?
Yes, there are many options available that will allow you to participate in market gains without being subject to market crashes. Indexed Annuities and Single Premium Life Insurance products are examples of investments that allow you to grow your assets tied to the gains of the stock market without risking a downside loss of being directly in the market.
What Are The Best Ways To Limit Exposure Or Protect My Assets From Taxes?
It depends on an individual’s situation. There is no one size fits all answer to this question. A full and complete analysis of assets is needed to fully answer this question. That said, If it is done correctly, there are no tax consequences to asset protection. There is, however, a myth that asset protection planning will lower your federal income taxes. That is total misinformation.
For more information on Asset Protection Planning In The State Of TX, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling 254-233-7300 today.