Asset Protection By State - The Safest Roadway To Protecting Assets

October 26, 2004
By Katherine Curtis

As wild vultures circle overhead, statutes and constitutional rights keep their sights focused on issues characteristic to asset protection by state. Each state's laws and court opinions differ on interpretations of asset protection. While some differences are very notable, many state's practices are very parallel. Asset protection techniques put into practice often center on the state's fraudulent transfer acts, debtor-creditor atmosphere, and property/trust exemptions.

Detour Ahead - Alternative Route In Place.
Every state has guidelines regarding fraudulent transfer acts. Transferring an asset while litigation procedures are underway carries heavy penalties such as fines, loss of assets, or imprisonment. Consulting an attorney or asset protection group while initially planning safety measures is the wisest route to follow.

Some Roads Are Friendlier.
Various states maintain smoother roads for debtor or creditor relief. Depending on where a state positions its asset protecting practices, either a debtor or creditor has more rights. When debtors have the right of way, their possessions are at less risk. Conversely, when creditors are permitted to pursue liabilities, debtors need to be careful about the value of assets and how titles are addressed. California and Louisiana are known for their creditor-friendliness, whereas Texas and Alaska are debtor-friendly states.

Clearing The Way To Home.
Homestead exemptions are measly in some states and unlimited in others. Rights to a portion or value of a home also fluctuate by the home's proximity to a city and the size of land. States that highly frown on bankruptcy appear to punish the debtor and severely limit homestead exemptions. Below is a brief sample of homestead exemption values in certain states.

* For more details concerning homestead exemption parameters or other asset protection issues for each state, refer to the state's secretary of state, attorney general, bar association or State Bureau of Investigation.