October 23, 2014

Texas State Asset Protection Laws

Texas Asset Protection Summary 

Homestead Exemption

Texas is one of the few states that provide complete exemption for the homestead.  There is unlimited value but the exemption applies to 1 acre in town and 100 acres in any area outside of town.  For married couples, the 100 acre outside of town exemption is doubled.  To view this statute, please click here.

Life Insurance and Annuities

Benefits, including the cash value or proceeds, of an insurance policy for the benefit of the insured or a beneficiary under an insurance policy or annuity contract are exempt.  To view this statute, click here.

Annuities are exempt.  Under the Texas Insurance Code, an annuity is considered “an insurance policy or contract if the annuity contract is issued: (1) by a life, health, or accident insurance company, including a mutual benefit company or a fraternal benefit society; or (2) under an annuity benefit plan used by an employer or an individual.” To view this statute, click here.

IRA

ERISA qualified, including IRAs, Roth IRAs and Keoghs, are exempt.  To see this statute, click here.

Corporate Protections

Charging Order

As the judgment creditor’s exclusive remedy, the debtor-partner’s or other partnership owner’s interest may be charged with payment of any unsatisfied amount with interest.  See §153.256 of Texas Limited Partnerships.

Business Acts

  1. Texas Business Corporations Act
    1. To view this Act, click here.
  2. Texas Limited Liability Companies
    1. To view this Act, click here.
  3. Texas General Partnerships
    1. To view this Act, click here.
  4. Texas Limited Partnership
    1. To view this Act, click here.

The Asset Protection Society makes every attempt to keep the material on its web-pages up to date and accurate. Having said that, The APS does not warrant the material on this site and you should ALWAYS seek out the advice of a local advisor in your state who can give you individual advice for your particular situation and confirm the status of your state laws.