Do I need to protect my savings and investments before being sued?

UPDATED: Oct 2, 2022

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Do I need to protect my savings and investments before being sued?

My wife was in an accident with motorcyclist. The medical bills are more than my insurance coverage. The insurance company says I may be responsible for the rest. Do I need to take steps now to protect my life savings and a home my mother lives in that’s in my name?

Asked on October 21, 2019 under Accident Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It's probably too late to take steps to protect these assets, unfortunately. Every state has passed a version of the "Uniform Fraudulent Transfers Act." This set of laws says that if you know or suspect (i.e. have reason to believe) that you will be sued or owed someone money, any transactions or transfers you make which are not for "fair market value" (i.e. selling something for what it is actually then worth) are fraudulent and can be voided or set aside by the creditor or plaintiff, so they can get at the money or asset. So if you, for example, try to put the house in someone else's name or into a trust, that transfer can be undone unless the person or trust acquiring it paid you the current fair market value for the home. Asset protection has to be done in advance, before you think you will need it.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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