Download the Updated 2021 50-State Asset Protection Chart (Life Insurance, Annuities, IRAs, and Homestead)
Click here to download the 50-State Chart!
If you are a financial planner, insurance agent, CPA, or attorney, the 50-State Asset Protection (AP) Chart is a must-download. It’s essentially a desk reference guide you can and will use multiple times a year.
If you’ve got the chart from a previous year, you need to download the update. Some prominent states have changed a few of their laws.
The chart shows:
- If cash value life is protected
- If annuities (cash value and annuity streams) are protected
- If IRA accounts are protected
It also lists the homestead exemptions and if the state has tenants by the entirety.
Let’s look at a few problematic examples:
1) Cash value life insurance in California—there are thousands of advisors selling CVL as a protective and tax-favorable retirement tool (which I’m a big fan of when done right).
In California the protection for CVL is only $25,600 if married (half if not married). But what about all those CVL policies with $100,000, $250,000, $500,000 in cash? Guess what, they are NOT protected from creditors.
2) Homestead in Illinois—only $30,000 of a home’s value is protected from creditors!
In today’s internet age with advisors picking up clients in multiple states through online marketing and Zoom type meetings, it’s vitally important to know the laws of different states so the best advice can be provided.
Learn Asset Protection Planning Education Video
A good way to understand why EVERY advisor should be helping clients with asset protection planning is to watch my introduction to asset protection webinar. To view, click on the following:
Asset Protection—The Wedge Taking Clients Away From Your Competition
Simply put, if you want to pick up affluent clients, you need to read this book. It provides a road map to picking up high income/net worth clients of all types. Click on the following button to download the book.