Parkin Son

Archive for May, 2009

Exempt assets are those that are expressly insulated by law from attachment, garnishment, levy, execution and other legal processes. They are the desirable assets that cannot be reached or seized by creditors. Many financially knowledgeable individuals often seek refuge in exempt properties. They convert their non-exempt assets into exempt ones for maximum insulation. Anticipating insolvency and future claims way ahead of time is a component of sound asset protection. Financially strapped persons are advised by asset protection specialists to transform reachable or exposed properties into exempt assets. Money is used to obtain selected properties that are specifically exempt from attachment and execution, such as the family home, tools and trade implements, clothing, professional books and instruments and many more subject to the time and monetary constraints set by law. In a 1944 American case, Congress Candy Company v. Farmer (73 N.D. 174), it was ruled that it is not a fraudulent conveyance for an insolvent debtor to change non-exempt property into exempt property.