If you have worked hard during a career and earned everything you have, it is almost a reflex to protect it for yourself in later life as well as for your children. When it applies to the law, there are various laws in different jurisdictions that help people protect their assets with trusts and other instruments.
What is a homestead exemption?
Some states allow a homestead exemption, which is a piece of land containing a primary home that cannot be seized during bankruptcy or other debt settlements. New Jersey does not have homesteading as part of its legal history, so the state does not have the exemption.
Is life insurance safe as an asset?
Proceeds from life insurance are exempt from seizure if someone other than the insured person is affected by them. Policies must be specific to exempt proceeds and avails from life insurance policies from seizure by creditors.
What about insurance policies like health insurance or disability payments?
These proceeds and avails are also exempt because they provide required benefits to the insured.
What are the assets that should be protected in trusts?
Assets that would be passed on to inheritors may be protected in trusts, so their transfer to the desired beneficiaries is more seamless and less riddled by tax implications.
How can a lawyer help protect assets?
The creation of trusts is a complicated venture which requires great attention to detail. An attorney can help people looking to protect assets with a full view of the implications and parts of the process of setting up asset protection trusts.