The quickest way to lose everything is to lose a lawsuit, especially with creditors. However, there are laws designed to protect your wealth.
When you think of people who get sued, you probably think about doctors and lawyers. However, there are several reasons you could face a lawsuit. You could end up in court as a result of bankruptcy, divorce or being sued for any reason. For example, if you have a teenager, you could end up in court over their actions. If someone falls on your lawn, you could be sued for those injuries. This is why you need to be prepared.
Your individual retirement accounts are protected up to $1 million in bankruptcy proceedings, but they have yearly contribution limits. However, qualified retirement plans, like 401(k), 403(b), and 457 plans, have unlimited bankruptcy protection.
However, these protections are not for judgments, a former spouse creditor or the IRS. Plus, in criminal cases, if you are found guilty, the state may have some access to those accounts as well. However, every state has laws for these accounts, and your Las Vegas, Nevada, estate planning attorney can go over the specifics in your case.
Your primary residence is known as your homestead, but you must file your homestead exemption on that home. Your homestead is protected from creditors, bankruptcies, etc. How much protection though, is dictated by state law, and every state has different limits. Again, your Las Vegas, Nevada, estate planning attorney can ensure your homestead is appropriately filed and it protects the family home.
Insurance and annuities
Insurance and annuity protection is also state-specific. However, each provides some protection from lawsuits and creditors, especially those who do not benefit you directly. The key takeaway here is that you should work with your Las Vegas, Nevada, estate planning attorney to ensure that your assets are protected, should you be involved in a lawsuit.