Auto insurance policy might not be enough

[Leen Sha]

A friend of mine had a car accident almost 3 of years ago...she was found at fault....(state of limitation is not passed yet) there is no lawsuit filed against her until this time... she only had WA state min. liability coverage 25k/50k ...she is worried that a lawsuit can still be filed before SOL which is April 2018. 

She does not have any other asset or income but has a primary residence in her name..which is free and clear..so now she is wondering how can she protect her primary residence against this possible lawsuit and have peace of mind?

I found that if she buys umbrella insurance policy now...it wont cover that accident ...I also found that putting her home in new single owner LLC in her name is not a good idea because of loosing homestead exemption and capital gain exemption.

So what is best option for her ..what about Qualified personal residence trust? or any better idea? 

[Alpesh Parmar]

I think hiring someone who is well versed in this kind of situation would be he best. I have heard the following and don’t take this as legal advice:
Strip the equity by taking out a HELOC or some kind of reverse mortgage on the house.
I do agree though that if she was at fault, she should pay as well.