As Mr. Utley is a part-time Small Claims Judge, he advises to be prepared if you are planning on representing yourself or your business in Small Claims Court. Evidence of the claim or allegation will likely carry the day. Also, never ignore or procrastinate a summons, ticket or court order!! It may come back to bite you!
To avoid collection of debt, if avoidance is necessary, there are certain items of personal property that are exempt from execution: IRA’s, 401(k)s and like ERISA qualified plans are safe havens during difficult times. Contributions are usually safe unless contributed within one year of filing Bankruptcy (and may still be safe if pattern of contribution is shown), 12 months of provisions (food storage) for individual or family, most household appliances and furnishings, tools of the trade and the Utah Homestead exemptions ($40,000.00 jointly and $20,000.00 individually).
Also, to protect from possible debt or personal judgments, it may be wise to max out your bodily injury, underinsured and uninsured policies. The increased premium usually is not that much more. Minimum coverage requirements in Utah is $25,000.00 and only $15,000.00 for California. In the event you are in an accident with one who has only minimum coverage, you may find yourself in a bind if you do not have proper bodily injury, underinsured and uninsured policies. Health insurance or life insurance policies may be other tools for asset protection.
Utah is a separate property State. Therefore, use this separate property status to your benefit. Avoid naming your spouse on business loans and/or guarantees. Titling key properties in spouses name alone may be a good idea.
For estate planning purposes, there are three primary ways to transfer property on death. These include, but are not limited to, (1) intestacy - state law decides how the estate passes, (2) joint tenancy - joint ownership in the whole; and (3) will - which requires probate. To allow creativity and to provide the interest holder the control to distribute property how she or he sees fit, a trust may be created (and probate is avoided!!!). Trusts are immediate (if funded), convenient, private and tailored to the individuals wants and needs. Be careful, revocable trusts do not protect from creditors!!
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