[slush fund]

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What types of investments are there that are protected against medical or legal judgements/claims?

Ie. you go to the doctor and have a 6 million dollar procedure and your health coverage is capped at 5 million. What types of investments are going to be exempt from a medical claim?

Ie. you hit someone with your car and kill them and there is a 3 million dollar judgement against you. Your car insurance and umbrella coverage only cover 1.5 million. What types of investments are going to be exempt from a legal judgement?

I have heard about property in some states has homestead exemptions, but in California it is some low amount like 50-100k.

Thanks in advance.

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the short answer is almost none. i collect on judgments for a living and the general rule is if you have something to lose, it can be taken.

here are the exceptions: a small number of states have a full homestead exemption, Florida where i am being one, but for only your primary residence. yeah, that's why OJ lives here. so that means no rental properties at all. while a homestead exemption will prevent any attempts at foreclosure, the judgment becomes a lien against the property that in most cases has to be satisfied if you want to sell or refinance or otherwise pass title.

other than that, bank accounts, brokerage accounts, corporate shares in companies you personally own are all accessible for seizure. one difference between owning a corporation and an LLC, is that a creditor can seize your corporate shares if you own a corp., but can only get what is called a charging lien against an LLC. a charging lien entitles the creditor to any future cash disbursements but you retain ownership of the LLC.

alright here is the secret to full and complete asset protection from creditors, get married. after you get married place every asset and account in you and your wife's name together. if a judgment is ever obtained against you, none of the jointly owned assets can be accessed unless the judgment is against both you and your wife together. so if you are married, never get joint credit cards or apply for credit jointly or buy an car in both of your names, always do it individually. this doesnt apply to corps of LLCs tho because they can't be owned jointly as a "tenancy by the entireties" that other assets are in a marriage