Asset Protection Michigan
Everything About Protecting Your Assets In The State Of Michigan
July 1, 2004
By Monish Datta
Asset protection planning involves figuring
out and applying a lawful series of techniques that
protects your assets from claims of future creditors.
The techniques are designed to deter potential creditors
from going after you, and frustrate them if they do,
generally by making it difficult or impossible for
future creditors to grab hold of your assets or collect
judgments against you.
Asset protection laws differ from state to state. Michigan
debtors may choose from either the state or federal exemptions.
Michigan offers a mixed bag from an asset protection perspective.
Homestead is given only nominal protection, but the cash value in
properly structured life insurance and annuity contracts can be
protected.
The Homestead exemption amount in Michigan is $3500.
The property may not exceed one lot in a town or city and 40 acres
elsewhere. Life insurance proceeds or annuity proceeds are exempt
if there is a clause that prohibits the proceeds from being used
to pay the beneficiary's creditors.
The following are some examples of Asset Protection Options :
Family limited Partnerships, is an entity, like a corporation. It
can own assets and can conduct most activities that can be conducted
by individuals or a regular corporation.
LLC's or Limited Liability company. When a Florida business is sued
you can be protected from being sued personally when your business
is a Florida LLC.
Other popular devices are:
- Joint tenancy property
- Life Insurance
- Michigan laws protect the following retirement assets from creditors:
- State employee retirement system benefits, except for QDRO Payments
and obligations to a spouse, former spouse, or child.
- Police and firefighters' retirement systems
- State police retirement system benefits.
- Judges' retirement system benefits.
- Legislative retirement system benefits.
- Public school employees' retirement system benefits
- Municipal employees retirement system benefits.
There are also many other asset protection devises and strategies
that a qualified attorneys in Michigan can help you with.
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