How to protect my house from potential business liabilities?

My wife and I are both 57 years old. We have a home with a mortgage. We have been toying with the idea of me signing over to her a warranty deed to protect our house. I am starting a new business from a business I was associated with that went bankrupt after 18 years. There was ownership problems. I also have a 37 year old daughter that we both don’t trust. She deals with several issues that makes her unstable and possible to do anything. We are not close but do talk every few weeks. Is this better for us or would putting the house in a trust be sufficient?

Asked on August 16, 2012 under Bankruptcy Law, Arizona

Answers:

Anne Brady / Law Office of Anne Brady

Answered 8 years ago | Contributor

You probably do no need to do anything.  In Arizona, there is a homestead exception that generally protects the home you live in from being taken in a bankruptcy or to recover a judgment against you.  I do not understand your concern about your daughter exactly, but putting your home into a trust would create all sorts of issues if you ever want to sell it, and you and your wife are still young.


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