Your umbrella policy can protect you from plenty of situations.
Do you know what your exempt property could be? In short, ‘exempt property’ means property or money that by law cannot be taken from you in order to pay a judgment or debt. While getting involved in a lawsuit is quite the headache, if you owe a large sum, you could end up having finances or possessions taken away from you in order to pay the debt.
However, feel rest assured that the following are exempt property in Minnesota:
Homestead – a residence owned and occupied by the debtor – is exempt to a value of $390,000. If it is used primarily for agriculture purposes, then up to $975,000 is exempt.
Wages and Earnings
- All of your tax earning below 40 times the federal minimum wage or 75 percent of your after-tax earnings, whichever is greater.
- Earnings of your minor child and any child support paid to you.
- All of your earnings if you receive or have received public assistance based on need within the past six months. These funds remain exempt for 60 days after deposit in a bank or other financial institution.
Business Assets
- Farm equipment, livestock, produce, and standing crops if your main occupation is farming, not exceeding $13,000.
- Tools, machines, office furniture, and inventory reasonably necessary in your trade or business, not to exceed $11,500.
Various Benefits, Pensions, and Insurance
- Relief based on need.
- Social Security benefits.
- Reemployment compensation, workers’ compensation, veteran’s benefits.
- A stock bonus, pension, individual retirement account, or annuity or similar plan.
- Insurance money received by surviving spouse or child as a result of the death of a spouse or parent, not exceeding $46,000.
- Rights to sue for personal injury.
Personal Property
- One motor vehicle not exceeding $4,600 in value or $46,000 if the vehicle has been modified at the cost of more than $3,450 to accommodate a physical disability.
- All money received on a claim on account of damage to or destruction of exempt property.
- All wearing apparel, one watch, utensils, and food without regard to value. Furniture in the house and appliances not exceeding $10,350.
- A pew in a church and a burial plot.
Find out more information, along with exclusions, here. For the umbrella policy that you need and deserve, contact the professionals at Kurt Rolf Insurance Agency, serving Hopkins and surrounding cities of Minnesota.
