Illinois laws provide asset protection for homes and life insurance policies.
The protection provided to a home, whether it is a house, a condominium or other form of primary residence, is $15,000 per individual.
The protection provided for life insurance policies equals the value of the policy as long as the proceeds payable because of death go to the wife or husband of the insured, a child, parent or other person dependent upon the insured.
These laws apply to everyone and no action is needed to take advantage of their protection.
Additional steps can be taken to protect other assets from the claims of creditors. These steps include establishing trusts and other entities which hold title to the assets. When properly created, the owner of the property can enjoy the benefits of the property without the worry that the property may be attached by a creditor.
Another step to protect assets from creditors is to retitle the asset. By doing this, the retitled asset is now in the name of a different individual and a creditor cannot reach the asset. Often an individual who uses this method already had the intent to pass the property to the other party, usually a family member, at some time in the future.
Consult your estate planning attorney for further information.