[Where can I put my cash (taxable)? What if I get sued?]

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Xtrasystolic
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[Where can I put my cash (taxable)? What if I get sued?]

Post by Xtrasystolic »

[Moved into a new thread from [Where can I put my cash (taxable)? What if I get sued?] --admin LadyGeek]

I’ve been meaning to ask a question to the gurus on this forum and this thread seems like the perfect venue so here’s goes (hope the OP is okay sharing):

I have a taxable account to dump the additional cash at the end of the month. I’ve been thinking about using a joint taxable account (with my wife) instead. If I were to get sued, would a joint account offer any additional protection to our assets as opposed to the individual account?
Robot Monster
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Re: How do you *say* "ERISA"

Post by Robot Monster »

Sorry...deleted...
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WJW
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Re: [Where can I put my cash (taxable)? What if I get sued?]

Post by WJW »

In most places, the money in the account can be seized in a lawsuit or otherwise with a court order to satisfy the debts of either account holder.
000
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Re: [Where can I put my cash (taxable)? What if I get sued?]

Post by 000 »

Lookup "tenancy by the entirety".
MikeG62
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Re: [Where can I put my cash (taxable)? What if I get sued?]

Post by MikeG62 »

Unless you are doing things which expose you to a greater risk of being sued than the average person, I would not let the risk of being sued (and actually having a judgement against you) dictate the form of account ownership.

Most risks of being sued can be insured against (homeowners/renters insurance, auto insurance + umbrella insurance). The risk of having a judgement against you beyond insurance is truly incredibly low (if you are properly insured). This has been discussed ad-nauseam on this forum (primarily in threads around umbrella insurance).
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unbiased
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Re: [Where can I put my cash (taxable)? What if I get sued?]

Post by unbiased »

I explored this also and settled on... an UMBRELLA POLICY.

It's the easiest way to protect your assets in case of lawsuits. It won't protect you from other risks, but that's the big one.
Dottie57
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Re: [Where can I put my cash (taxable)? What if I get sued?]

Post by Dottie57 »

unbiased wrote: Sun Sep 06, 2020 7:15 pm I explored this also and settled on... an UMBRELLA POLICY.

It's the easiest way to protect your assets in case of lawsuits. It won't protect you from other risks, but that's the big one.
+1
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Nate79
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Re: [Where can I put my cash (taxable)? What if I get sued?]

Post by Nate79 »

Xtrasystolic wrote: Sat Sep 05, 2020 7:18 pm [Moved into a new thread from [Where can I put my cash (taxable)? What if I get sued?] --admin LadyGeek]

I’ve been meaning to ask a question to the gurus on this forum and this thread seems like the perfect venue so here’s goes (hope the OP is okay sharing):

I have a taxable account to dump the additional cash at the end of the month. I’ve been thinking about using a joint taxable account (with my wife) instead. If I were to get sued, would a joint account offer any additional protection to our assets as opposed to the individual account?
If you have access to 401k at work are you maxing it out?
Topic Author
Xtrasystolic
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Re: [Where can I put my cash (taxable)? What if I get sued?]

Post by Xtrasystolic »

WJW wrote: Sat Sep 05, 2020 7:57 pm In most places, the money in the account can be seized in a lawsuit or otherwise with a court order to satisfy the debts of either account holder.
Got it, thanks!
unbiased wrote: Sun Sep 06, 2020 7:15 pm I explored this also and settled on... an UMBRELLA POLICY.

It's the easiest way to protect your assets in case of lawsuits. It won't protect you from other risks, but that's the big one.
Makes sense, will definitely look into umbrella coverage, thanks!
Nate79 wrote: Sun Sep 06, 2020 8:24 pm
If you have access to 401k at work are you maxing it out?
Yes, maximizing employer sponsored plans and Roth IRA's. HSA/529 are not really viable options for us, hence the taxable.
Thanks!
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