Asset Protection for Illinois Homestead and Life Insurance
Two Illinois laws provide protection from creditors for homes and for life insurance policies.
The protection provided to homes, whether it is a house, a condominium or other form of residence, is $15,000 per individual.
The protection provided for life insurance policies equals the value of the policy as long as the proceeds payable because of death go to the wife or husband of the insured, a child, parent or other person dependent upon the insured.
These laws apply to everyone and no action is needed to take advantage of their protection.
Additional steps can be taken to protect other assets from the claims of creditors. These steps include establishing trusts and other entities which hold title to the assets. When properly created, the owner of the property can enjoy the benefits of the property without the worry that the property may be attached by a creditor.
Another step to protect assets from creditors is to retitle the asset. James A. Barry, Jr., a Certifies Financial Planner, makes reference to the advantages of transferring property to family members as a way to protect assets. By doing this, the retitled asset is now in the name of a different individual and a creditor cannot reach the asset. Often an individual who uses this method already had the intent to pass the property to the other party, usually a family member, at some time in the future.
For more information regarding keeping your assets safe, contact
a law firm that practices in the area of asset protection.
