The Power of the Homestead Exemption | Mark J Kohler | Tax & Legal Tip

Hi, Mark Kohler here with another tax and legal tip. Let's talk about the homestead exemption. Now, this is an important strategy for every American in the country that owns a personal residence. You've got to know what the strategy is about to better protect your personal residence from a lawsuit. Now, in my new book, the Tax and Legal Playbook, I have an entire section where I talk about asset protection and specifically the homestead exemption. This has nothing to do with bankruptcy and it actually has to do with a creditor coming after you in a lawsuit. And it is basically the point that there's a certain amount set aside statutorily by the state in which you live as to how much is protected in the equity of your home, that if anybody were to sue you, that equity is carved out and given to you so you're not left homeless. This is a governmental provision to basically protect people from being thrown on the street. So you want to know what the exemption amount is in your state to protect you from that potential lawsuit. Now, as you can imagine, the rules vary dramatically from state to state. In some states you have to file for this, the county. In other states, it's automatic. In other states it may be 10 grand. And another state, it's unlimited. Think of O.J. simpson down in Florida. So what you want to do is look at your state and find out what the homestead exemption is and how to apply for it or how to take advantage of it. Well, in my book, of course, I wanted to make sure there was a table in the back, the homestead exemption table, where you can look at your state and look at what the provisions are and how to get it and what the amount is. Now, of course, this is one of many different asset protection strategies I talk about in my book and talk about regularly. In fact, you'll see other videos here on my YouTube channel, all these sorts of topics. And I just love this because I want to protect the hard earned assets of my clients from a potential lawsuit or even, heaven forbid, texting and driving or something that could go really dramatically wrong in your life. And this doesn't mean you avoid insurance. You still want to get the proper amount of insurance in your life and maybe Even set up LLCs and corporations for your business and other things such as this. But the homestead exemption is specifically designed for your home. Finally, make sure you have an asset protection strategy or reviewing your asset protection plan on a regular basis. We have five lawyers at our office helping clients nationwide tailor an asset protection plan that fits them best. Don't overspend. Watch out for the scams. I write about that a lot as well, so always get a second opinion if something seems a little too crazy or expensive. Bottom line, keep living the dream and protect those hard earned assets you've been building up. Thanks thanks for listening and I hope that information was helpful and let me speak from the heart here. I've been talking about topics like this for 1015 years. I'm a CPA attorney, best selling author, radio show host and I am passionate about helping small business owners save taxes, build wealth and protect it. Please check out the link right here. Download my free ebook on 10 Common Mistakes Small business owners make in the tax and legal arena. Also check out my social media links here. I've got Daily Tips, a weekly blog radio show every week. This information is free and I'd love to help you. Click below. Find out more about me and thanks for listening.