How to Safeguard Your Assets from a Civil Lawsuit in Scottsdale, AZ
If you’re a resident of Scottsdale, AZ, and you’re worried about the possibility of a civil lawsuit, you’re not alone. According to the US Chamber Institute for Legal Reform, Arizona ranks 32nd in the nation in terms of fair treatment of plaintiffs and defendants in civil lawsuits. In other words, the state is relatively plaintiff-friendly, which means that a lawsuit can potentially threaten your hard-earned assets. That being said, it’s vital to take measures to protect your assets from a civil lawsuit. In this blog, we’ll discuss a few essential tips to safeguard your property in Scottsdale. So, how to safeguard your assets from a civil lawsuit in Scottsdale?
The first thing you should do to protect your assets from a civil lawsuit is to buy insurance. Liability insurance, in particular, is crucial since it can protect you from potential lawsuits by providing financial coverage for the damages. Typically, the personal liability coverage limit of a homeowners insurance policy is $100,000. However, it would be best if you considered increasing the coverage to at least $300,000.
Homestead Your Home
Homestead exemption is the legal protection of your home equity. In other words, it prevents creditors from forcing the sale of your property in the event of a lawsuit. Under Arizona law, you can exempt up to $150,000 of the equity in your house if you’re the owner and have occupied it for at least six months before the judgment. However, if you’re 65 years or older and/or disabled, the homestead exemption limit increases to $250,000.
Gifting and Transferring Assets
Gifting and transferring assets are suitable methods of protecting your assets from creditors. Gifting property, for instance, involves giving a portion of your assets to another person or a trust. By doing so, the transfer automatically removes your ownership of the property and places it under the new owner’s name. However, you should know that certain Arizona laws limit the amount you can protect through this method. For instance, fraudulent transfer is not allowed, and pre-existing debt may be still enforced against the transferee.
Create a Trust
You can also safeguard your assets through a trust fund. In a trust fund, assets are transferred into a trust that is managed by a trustee, who distributes the assets according to the trust agreement. A trust offers more protection than an outright transfer of assets since it allows the assets to be managed for the benefit of the beneficiaries while eliminating risks.
Seek Legal Help
Finally, if you’re worried about a potential civil lawsuit, it’s best to seek the advice of a trusted legal expert. A skilled bankruptcy lawyer can guide you through the legal complexities and help you take the necessary measures to protect your valuable assets. They can also review your financial situation and recommend a suitable legal strategy to safeguard your financial future.
How to Safeguard Your Assets from a Civil Lawsuit in Scottsdale
In conclusion, safeguarding your assets from a civil lawsuit in Scottsdale, AZ, requires careful planning and proactive measures. The above tips are just a few of the many effective measures that you can take to protect your hard-earned assets. It’s essential to understand that each case is unique, and it’s important to seek the help of an experienced bankruptcy lawyer who can assess your situation and help you navigate the legal complexities effectively. Remember, proactive planning is key to safeguarding your assets and securing your financial future. Contact our bankruptcy lawyers at Thomas Law for a consultation.