HoneyBBQ
Junior Associate
Joined: Dec 27, 2010 10:36:09 GMT -5
Posts: 5,395 
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Post by HoneyBBQ on Aug 13, 2015 15:55:52 GMT -5
I'm sure this varies from state-to-state, etc. But in general, what of one's assets can be sued for?
e.g.
Future Earnings
Money in the bank
Your house (equity in house)
Your retirement accounts
Your 529 accounts
etc.
Just curious. We have 1MM policies on our vehicles and 1MM umbrella. I guess the only thing I worry a lot about is future earnings. But what can you be sued for?
And how likely are these things to be sued for? I know you can really sue for just about anything, but does it depend on the severity of the crime? E.g. a minor fender bender vs drunk driving accident?
Really just curious.
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❤ mollymouser ❤
Senior Associate
Sarcasm is my Superpower
Crazy Cat Lady
Joined: Dec 18, 2010 16:09:58 GMT -5
Posts: 12,861
Today's Mood: Gen X ... so I'm sarcastic and annoyed
Location: Central California
Favorite Drink: Diet Mountain Dew
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Post by ❤ mollymouser ❤ on Aug 13, 2015 16:10:45 GMT -5
One sues another person based (usually) because a contract or statue lets one sue ... or because a tort has been committed.
Assuming one wins the lawsuit, one gets a judgment of a specific dollar amount.
If that judgment cannot be satisfied by insurance, then state laws permit the judgment holder to go after bank accounts, real property, etc.... including garnishment of wages. If you have a retirement plan that was set up under the Employee Retirement Income Security Act (ERISA), then it is usually protected from judgment creditors.
Last time I checked, at least 19 states afforded some protection from creditors for 529 accounts.
Some states provide greater protection for homes (such as Florida).
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Deleted
Joined: Oct 12, 2024 19:24:24 GMT -5
Posts: 0
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Post by Deleted on Aug 13, 2015 18:58:35 GMT -5
Honey, go to $5M, it's not much more money... I'm sort of the opposite. You can't insure for everything.
Don't drive when you've had more than one drink. Don't outsource maintenance (including painting) without checking their insurance. Don't use your personal vehicle for business.
You get the idea. Avoid the known risks and breathe.
That said, I also have the $1,000,000 umbrella insurance and the same amount of professional liability insurance. It probably isn't enough if I get sued, but I don't actually think the chances of getting sued are that high since I avoid the known risks.
The rest is just bad karma, and there is no amount of insurance in the world that will cover that.
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Deleted
Joined: Oct 12, 2024 19:24:24 GMT -5
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Post by Deleted on Aug 13, 2015 21:41:21 GMT -5
Isn't a 401k pretty safe from all judgements but back taxes and child support?
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Mardi Gras Audrey
Senior Member
So well rounded, I'm pointless...
Joined: Dec 25, 2010 18:49:31 GMT -5
Posts: 2,087
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Post by Mardi Gras Audrey on Aug 14, 2015 1:45:59 GMT -5
If your assets are in a trust, can those be gone after? My understanding of trusts is that it is a separate legal entity so that it can "own" assets. So, if all of your assets are in trust and you get sued, are they fair game? Or are "you" (the you that got sued) essentially broke because "you have no assets"?
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