Exempt Property
Exempt property is a term used in the financial world to refer to assets that are not subject to taxation or other legal claims. This includes items such as certain types of retirement accounts, life insurance policies, and certain types of investments. Exempt property is typically protected from creditors and other legal claims, allowing individuals to keep their assets safe from creditors and other legal claims.
History of Exempt Property
The concept of exempt property has been around for centuries, with the earliest known reference to it appearing in the Code of Hammurabi in 1754 BC. In the United States, the concept of exempt property was first codified in the Bankruptcy Act of 1898. This act allowed individuals to keep certain assets from creditors in the event of bankruptcy. Since then, the concept of exempt property has been expanded to include other types of assets, such as retirement accounts and life insurance policies.
Comparison of Exempt Property
| Type of Property | Taxable | Protected from Creditors |
|---|---|---|
| Retirement Accounts | No | Yes |
| Life Insurance Policies | No | Yes |
| Investments | Yes | Yes |
Summary
Exempt property is a term used to refer to assets that are not subject to taxation or other legal claims. This includes items such as certain types of retirement accounts, life insurance policies, and certain types of investments. Exempt property is typically protected from creditors and other legal claims, allowing individuals to keep their assets safe from creditors and other legal claims. For more information about exempt property, you can visit the Internal Revenue Service website or consult a financial advisor.
See Also
- Taxable Property
- Creditor Protection
- Retirement Accounts
- Life Insurance Policies
- Investments
- Bankruptcy Act of 1898
- Internal Revenue Service
- Financial Advisor
- Asset Protection
- Tax Exemptions
