Q: How can I protect my assets in Texas from a lawsuit?
A: Many assets are protected in Texas. For starters, a married couple can keep $60,000 worth of personal property. The limit is $30,000 for unmarried individuals. Homes located in Texas are also exempt from creditors' claims as long as it is located on 10 acres or less in town, or on 200 acres or less out of town, or 100 acres for individuals. There's no limit on the value of the homestead, so even a homestead worth millions of dollars is protected. If you owe money to the bank, though, on your home, your home can be foreclosed even if you have homestead protection. Be advised, the rules are different when involved in a bankruptcy.
Retirement accounts, 529 education accounts and life insurance cash values and annuities all have unlimited protection. After-tax contributions to non-Roth retirement accounts are not protected. Current wages are also protected, unless a court has ordered you otherwise (i.e. IRS back payments, child support, alimony or other support or maintenance).
As you can assume, there are exceptions to statements in this answer, so you should meet with an attorney specializing in asset protection to make sure you have taken the necessary steps to protect your property.
Editor's note: The information in this column is not intended as legal advice but to provide a general understanding of the law. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
