Part of asset protection planning may include assessing your home equity. The Homestead Exemption Protection law of Nevada offers homeowners a great way to protect assets. In Nevada, homeowners can protect up to $550,000 in equity from creditors. To take advantage of this option, you will need to contribute more principal to mortgage payments. This increases equity in your home.
Keep in mind this protection will not be automatic. You will need to file a valid homestead declaration. This declaration must be updated if you refinance or quitclaim the home to a living trust. An asset protection manager can help you explore how this option can benefit you.
Make sure you know the limits on your liability insurance. Your insurance policies will be your first line of defense against a lawsuit. Liability coverage is usually affordable. Make sure you get limits high enough to protect you. An umbrella insurance policy may be recommended by your asset protection manager.
Insurance is a very important barrier against many threats you may face. Still, it is not always enough to fully protect you. For example, it can’t protect you against exceptions in your coverage or beyond your policy limits.
It will also be no help if you ever file for bankruptcy. Asset protection planning adds an additional barrier for the greatest protection for your assets.
Asset Protection Trust
Placing your assets in a trust is one of the most powerful ways to protect your assets. An experienced asset protection attorney can ensure your trust is set up to shield your assets from lawsuits.
There are numerous laws that protect trust assets as long as the trust is correctly funded and drafted.