smart spending

Protect assets from creditors, lawsuits

Insurance policies
Insurance policies © carballo/Shutterstock.com

The simplest and most effective tactic, Armstrong says, is to buy insurance in an umbrella policy, which has the additional benefit of making the insurance company responsible for defending you.

The downside? "The insurance company could go out of business," he says.

Life insurance is sometimes exempt from creditors, says Jay Tarshis, head of the trusts and estates practice group at Arnstein & Lehr's Chicago office.

"In Illinois," he says, "life insurance payable to a spouse or child tends to be protected, but it may not be if it's payable to someone else, so you have to look at state law -- is it blanket protection or something less?"

Some people put life insurance in an insurance trust, Tarshis says, but like all measures to protect your assets, that has to be done before you have creditors knocking at the door.


advertisement

Show Bankrate's community sharing policy
          Connect with us
REFINANCE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed refi 4.05%  0.06 3.99%
15 year fixed refi 3.11%  0.01 3.10%
10 year fixed refi 3.17%  0.04 3.13%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.32%  0.01 4.31%
50K FICO-based HELOC 4.06% --0.00 4.06%
100K FICO-based HELOC 3.92% --0.00 3.92%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.81% --0.00 2.81%
48 month used car loan 3.04% --0.00 3.04%
60 month new car loan 3.24% --0.00 3.24%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 0.99%  0.01 0.98%
2 Year CD 1.19%  0.02 1.17%
5 Year CD 1.84%  0.01 1.85%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.73%  0.01 15.72%
Cash Back Cards 16.43% --0.00 16.43%
Low Interest Cards 10.98%  0.02 10.96%
 
Next
advertisement
FRUGAL NEWSLETTER

Discover new ways to cut costs and save more every day. Reduce your spending, not life’s pleasures. Delivered weekly.

advertisement
Partner Center
advertisement

Connect with us