Infrastructure & maintenance, not possessions
I don't care if it's redundant...this is a great thread.
I was in a very similar situation, and would never have believed how stressful it was all of a sudden to need to SPEND money, and fast! Once my lawyer finally convinced me I HAD to part with my paid-for car, he was very helpful in helping me make the right choices about what to do with the proceeds. He was very clear about the need to put the money INTO an exempt asset (in my case, three acres of forest with a 10x12 cabin and a well), rather than turning the money into assets that could be seized. I took him literally, and paid for:
I think examples of less-good choices for me might have been a woodstove, and kitchen appliances, however necessary. I might spend it on stovepipe, but not the actual stove. Copper pipe for the propane, but not the range, which I really need. Infrastructure & repair, not possessions.
For you, I'd say definitely deal with the plumbing and electrical work. I love the idea of a year's worth of heating oil, and tires/car maintenance, dental work, and an IRA. These are all totally exempt and untouchable. I'd check on the allowances for clothing and be sure to keep to that limit, although obviously if you have kids, they outgrow things so quickly. Ask your lawyer specifically about those allowances for your state, and also about the fridge, which I would expect they'd consider an asset.
FWIW, the trustee didn't bat an eye at any of my expenses, and my attorney was teasing afterwards me about being so worried about it.
I don't care if it's redundant...this is a great thread.
I was in a very similar situation, and would never have believed how stressful it was all of a sudden to need to SPEND money, and fast! Once my lawyer finally convinced me I HAD to part with my paid-for car, he was very helpful in helping me make the right choices about what to do with the proceeds. He was very clear about the need to put the money INTO an exempt asset (in my case, three acres of forest with a 10x12 cabin and a well), rather than turning the money into assets that could be seized. I took him literally, and paid for:
- a septic system (and all the testing and inspections connected with it)
- a well pump
- roofing and tar paper for the little cabin
- a load of rock for the "driveway"
- rental of an excavator to clear the site for the real house
- rental of a log splitter to split a year's worth of firewood
- the first new pair of eyeglasses in 4 years
- 6 months of car insurance
- next year's building permit
- 50lbs of rice
- another 50 lbs of candle wax and kerosene (I'm off the grid)
...like that. - a well pump
- roofing and tar paper for the little cabin
- a load of rock for the "driveway"
- rental of an excavator to clear the site for the real house
- rental of a log splitter to split a year's worth of firewood
- the first new pair of eyeglasses in 4 years
- 6 months of car insurance
- next year's building permit
- 50lbs of rice
- another 50 lbs of candle wax and kerosene (I'm off the grid)
I think examples of less-good choices for me might have been a woodstove, and kitchen appliances, however necessary. I might spend it on stovepipe, but not the actual stove. Copper pipe for the propane, but not the range, which I really need. Infrastructure & repair, not possessions.
For you, I'd say definitely deal with the plumbing and electrical work. I love the idea of a year's worth of heating oil, and tires/car maintenance, dental work, and an IRA. These are all totally exempt and untouchable. I'd check on the allowances for clothing and be sure to keep to that limit, although obviously if you have kids, they outgrow things so quickly. Ask your lawyer specifically about those allowances for your state, and also about the fridge, which I would expect they'd consider an asset.
FWIW, the trustee didn't bat an eye at any of my expenses, and my attorney was teasing afterwards me about being so worried about it.
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