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Apr 21, 2009 
Without hiring a lawyer or creating anything fancy, there are some things that we can do on our own to protect our assets from those who would like to get their hands on our stuff. In the coming days, we’ll discuss some simple things that everyone can do to better protect themselves.
The “Homestead Exemption” strategy is one of the reasons why O.J. Simpson was able to live in a nice home while he tracked down the “real killer” across the great golf courses of the world. (Before his abject stupidity kicked in again and led him to commit another crime that will see him probably die in prison where he belongs).
What is a Homestead Exemption?
If you own your own home, most states offer a “Homestead Exemption” which offers some legal protection for your house. In some states this is automatic and in others you need to apply specifically for it. Usually, these laws will only allow you to protect one primary residence and sometimes there is a limit on the value or the acreage that may be protected.
Homestead exemption laws typically have two main features:
1. They prevent the forced sale of a home to meet the demands of creditors (except to satisfy mortgages, mechanics liens, or to pay property taxes)
2. They provide some exemption from property taxes applied to the primary residence
So, they can’t make you sell your house if your lose in a lawsuit, and you get some tax savings every year at the same time!
You need to check this out for the state where you live to make sure that you are taking advantage of this “free” asset protection strategy.
We’ll look at another simple strategy tomorrow… Ciao, Rob
26 Comments 
(51 comments)
• Apr 21, 2009 @9:13 am
