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The Importance Of Personal Umbrella Insurance

Property that is exempt from paying a judgment or debt in Minnesota is very limited then most know! (For complete details please visit Minnesota Exempt Property and or seek legal advice).

  1. Your home value is only exempt up to value of $390,000.  Any amount above the $390,000 amount is fair game to collect.  If you thought you could keep your home in a pending judgment you are correct as long as the value doesn’t exceed $390,000.
  2. Wages and earnings are exempt as long as all of your after tax earnings are below 40 times the federal minimum wage or seventy-five percent (75%) of your after tax earnings whichever is greater.
  3. Business assets are exempt up to a combined limit of $13,000.
  4. Personal Goods are NOT exempt from secured claims to collect the purchase price.
  5. One motor vehicle is exempt as long as the vehicle does not exceed $4,600 in value.
  6. Household furniture, appliances and furnishings not exceeding $10,350.
  7. A stock bonus, pension, IRA, or annuity or similar plan or contract received on account of illness, disability, death, age, or length or service to the extent your aggregate interest under all plans and contracts does not exceed a present value of $69,000 plus the additional amount of reasonable necessary for the support of the debtor or debtor’s dependents.
  8.    Good news you get to keep a pew in church, one watch, and a burial plot!

If any of your wages or valuables exceed these amounts purchasing a personal umbrella policy could provide valuable coverage!