Asset Protection - State Laws

State Laws - The Differences - Part 5

You should familiarize yourself with your state's laws especially concerning property. This arcane information could affect how you hold and title your assets, and even whether you should purchase term insurance or invest in a whole life policy. For example: In the state of Illinois, the homestead exemption is only $7,500. However, you can protect the entire cash value of the life insurance and annuities so long as the beneficiary is a dependent. There is no state law for homestead exemption in the state of Maryland, but it's one of the states allowing you to hold property as "tenants by the entirety." Which means, generally, creditors of just one spouse can't reach property titled this way.