How Vulnerable Is My Home To A Lawsuit?
Your home may be temporarily protected from a lawsuit if handled correctly. First, if it is actually your homestead where you reside most of the time, and if it is titled solely in your name or in the name of yourself and your spouse (rather than in the name of a business), and if the home is not used for business purposes to a substantial degree as disclosed by your deductions on your tax return, then there is a substantial likelihood that a judgment creditor would be unable to force you out. However, a judgment creditor could attach a lien to the title of your home. That lien may be kept alive indefinitely, and would keep you from selling the home to another person without having first paid the lien with interest. Additionally, you would not be able to leave the home to your heirs and beneficiaries free of the lien. Interest, court costs, and attorney fees would likely continue to accrue on that lien. Those expenses will typically grow substantially faster than the rate of inflation, thereby ever-reducing your equity in your house and ever-increasing the value of the lien. Therefore, your home’s protection from a lawsuit exists, but it is not particularly impressive protection.
If your home is titled in the name of your revocable trust, there is a reasonable likelihood, based upon an attorney general’s opinion, that your house will retain its homestead exemption status. It will not, however, become ignored for the purposes of Medicaid and nursing home payments; the home in your revocable trust is going to forever remain vulnerable to those expenses. That should not be taken to mean that there is nothing I can do to help you in this situation, as there is a list of things that we can do to help you. However, all of the options cost money and take time.
For more information on Vulnerability Of Home To A Lawsuit, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (405) 754-4166 today.
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