For a majority of us, real estate is our most valuable asset. It might be your dream house for which you used all your savings or a farmhouse that you bought in the countryside, as a weekend getaway. No one would like to see such assets come under the threat of creditors and lawsuits.
It a given fact that real estate is one of the most fought after asset in recovery suits. Firstly, this is so because of its visibility. After all you cannot stash your house in your pocket and hide it away from your creditors or from frivolous lawsuit mongers. Secondly, real estate offers good returns. Normally, land and real estate assets only appreciate in value, and are subject to zero or low depreciation. This lends a special place to real estate as an asset. Because of all these reasons, it becomes very important to protect your real estate.
Strategies for protecting your real estate are actually readily available. In reality, these might not be the right choices for you. The safest strategies are those that have been tested in the court and are known to be successful. The next are those that lie on the so-called $%:pioneering frontier,$%: being so original that the creditors have not yet identified them as an asset protection strategy. These strategies give the debtor a considerable edge over the creditor, who might have a hard time trying to figure out the strategy while in litigation.
States with generous homestead laws such as Florida, Kansas and Texas offer the best protection for real estate. Tenancy in the entirety for the ownership of real estate by a husband and wife is an option available to people living in states which provide for it. It is a special form of joint tenancy, where neither spouse can sell the property without the consent of the other. Formation of a residential trust is a third option.
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