Illinois laws provide asset protection for homes and life insurance policies. The protection provided to a home, whether it is a house, a condominium or other form of primary residence, is $15,000 per individual. The protection provided for life insurance policies equals the value of the policy as long as…
In his article, When is it Too Late for Asset Protection?, Attorney Robert Mintz discusses the pitfalls of asset protection planning. He points out that states, including Illinois, have fraudulent transfer laws. These laws prohibit an individual from transferring property to another entity to “hinder, delay or defraud” someone owed…
Asset protection for a business can be straight forward and a relatively simple matter to implement. At the same time, it can protect a large chunk of the assets of a business. For example, in the case of a company that runs a manufacturing business, the usual business structure is…
You do not have to sell your home in order to qualify for Medicaid coverage of nursing home care in Illinois; however the state can file a claim against your house after you die. You can freely transfer your home to the following individuals without incurring a transfer penalty which…
Asset protection planning is about protecting your assets from creditors – and it is not just for the super-wealthy. Anyone can get sued. Lawsuits can stem from car accidents, credit card debt, bank foreclosures or unhappy customers. If someone wins a monetary judgment against you, your family could become bankrupt…
The basic premium for Medicare Part B will be $115.40 a month in 2011, up from $110.50 in 2010 (a 4.4 % increase). But because there will be no cost of living benefit increase for Social Security recipients for 2011, most beneficiaries will be exempted from paying this increase and…
The White House is proposing to limit the ability of families to use partnership structures to minimize the valuation of assets for estate tax purposes. A family might set up a partnership to introduce younger family members to investing while the parents maintain control over the assets, or a family…
Here’s another reason to convert your traditional IRA to a Roth IRA: When you convert to a Roth IRA, you can pay the conversion fee out of other assets. That is, you can pay the conversion fee from funds not in the traditional IRA. This will maximize the amount that…
Daniel Henninger’s recent article in The Wall Street Journal titled “U.S. Says It Will Bail Out Christmas” is too entertaining not to be included in this Christmas blog: With the government on the brink of rescuing the U.S. auto industry, we have learned that the Treasury Department is drawing up…