Michigan Asset Protection SummaryHomestead Exemption Real property owned and occupied by any resident of this state is entitled to a Homestead exemption of $3,500. This real property is limited to 1 lot within a town, city, or village; outside the city, town, or village the real property is limited to 40 acres. To see this statute, click here. Life Insurance and Annuities Life insurance or annuity contracts issued by a domestic, foreign or alien insurer are not subject to the claims of creditors of any beneficiary other than the insured so long as there is a clause in the contract that states so. To read the MI Statute, please click here. If you have further questions about protecting life insurance in the state of MI, please post your question on the APS™ message board by clicking here. Any husband or father has the right to insure his life for the benefit of his wife and child(ren). When the beneficiaries receive this benefit, this benefit passes to them free from claims of the insured’s creditors. To view this statute, click here. Subject to the terms and restrictions on the life or endowment policy and the annuity contract, the proceeds of such policy and contract are exempt from creditors. To view this statute, click here. IRA ERISA benefits, including IRAs and Roth IRAs, are exempt under IRC of 1986 §§408 and 408A. To view these statutes, see M.C.L. §§600.6023(k) and 600.5451(l). Corporate Protections
The Michigan’s Limited Liability Company and Family Limited Partnership statutes are not what the APS consider favorable statutes from an asset protection standpoint. A “charging order” is NOT the exclusive remedy of a creditor. A judgment creditor may charge the debtor-partner’s partnership interest with payment of any unsatisfied amount with interest. To the extent charged the judgment creditor has only the rights of an assignee of the debtor-partner’s transferable interest. To view this section of Michigan’s Revised Uniform Limited Partnership Act, click here.
Business Acts
The Asset Protection Society makes every attempt to keep the material on its web-pages up to date and accurate. Having said that, The APS does not warrant the material on this site and you should ALWAYS seek out the advice of a local advisor in your state who can give you individual advice for your particular situation and confirm the status of your state laws. |
