We regularly post articles about recent developments in Florida law. We also address common questions and provide examples of effective asset protection strategies.
We have been publishing legal articles on our site for over twenty years, making it one of the oldest legal blogs in the country.
Joint tenants with rights of survivorship, or JTWROS, is a description of asset ownership. The term describes one way that two people may own an asset together. Joint tenancy with the right of survivorship applies…
Many clients ask us whether they should create a new business as a Subchapter S Corporation or as a Limited Liability Company. How you organize a new business has both tax consequences and asset protection…
A spendthrift clause is a special trust provision that protects trust assets from a beneficiary’s creditors. It also prevents a beneficiary from using trust assets as collateral for a loan. When a trust has a…
A Cook Islands trust and a Nevis LLCs are both effective offshore asset protection tools. The entities and their clients’ assets are beyond the jurisdiction of U.S. courts. Creditors cannot use Florida court collection tools…
A fraudulent transfer is a transfer of an asset (1) done with the intent to hinder or delay collection by a creditor or (2) that makes the debtor insolvent without receiving reasonably equivalent value. Fraudulent…
Offshore trusts are most effective when your assets are transported from the United States to a trustee situated in a foreign country. The trust and the trustee are beyond U.S. court jurisdiction. We typically recommend…
What Is a Bridge Trust? A bridge trust is a type of irrevocable trust used in offshore asset protection planning. It combines the features of domestic and offshore trusts. This means it starts as a…
This interesting question was the subject of a Pennsylvania bankruptcy case. Pennsylvania law recognizes tenants by entireties exemption, and Pennsylvania law prohibits wage garnishments. A married debtor filed Chapter 7 bankruptcy individually. For most of…
Summary If your child causes a car accident in Florida, you may be exposed to civil liability for the child’s negligence. A money judgment could be entered against you for the victim’s injury even if…
What Is a Notice of Trust? A notice of trust is a legal document filed with the court in Florida that informs the public and potential creditors that a trust has been established for a…
Why Do People Want to Hide Money? We occasionally receive requests from clients who want to hide assets from their husband or wife. Most of these clients want to hide money from their spouse for…
Quick answer: a domesticated judgment is enforceable for 20 years after the date of the original judgment. What Is a Domesticated Judgment? A creditor who obtains a money judgment against you in a foreign state…
Florida law allows you to protect unexempt assets at any time by purchasing a Florida homestead. A key feature of Florida homestead law is the homestead’s exemption from fraudulent conversion claims brought under Florida’s fraudulent conversion statute….
A non-owner spouse does have a legal interest in their Florida homestead property. A couple can arrange to have only one of two spouses own the couple’s homestead property. A married person can maintain a legal…
A homestead under construction is not protected from creditors. Your property is not exempt under Florida Homestead law just because you intend to occupy the property sometime in the future. Property reserved for a future…
Can a condominium qualify as Florida homestead in an action to terminate a condominium association even if you don’t live there? Under a Florida condominium statute, section 718.117, an owner who resides in a condo…
The answer is yes. When you prepay taxes to the IRS or make an excessive tax payment, a judgment creditor has no method to get the money back. A judgment creditor cannot garnish the IRS…
When it comes to safeguarding your home from creditors, Florida’s homestead exemption provides one of the strongest protections in the United States. However, many homeowners wonder about the extent of this protection, especially concerning federal…
The Kelley’s Homestead Paradigm is a flowchart created by attorney Rohan Kelley. It shows what happens to a Florida homestead property once the owner dies. The paradigm includes six primary questions and then outlines what…
Florida law provides judgment creditors numerous means to find information about a debtor’s income and assets. Discovery in aid of execution in Florida refers to the legal process by which a judgment creditor finds (discovers) debtor assets…
Florida homestead law does apply to mobile homes. They are not protected under the Florida Constitution, but they are protected under section 222.05 of the Florida Statutes. The statute provides that mobile homeowners and occupants…
What Is a Single-Purpose LLC? A single-purpose LLC is a limited liability company that owns a single asset. Most often, single-purpose LLCs hold a particular real property or they own certain intellectual property such as…
Sometimes clients ask me about loan contracts they may have signed many years ago. These contracts often have a section or paragraph that states the borrower waives all of the statutory exemptions, including their homestead…
A Florida dynasty trust is an estate planning trust that provides estate tax savings and asset protection throughout multiple generations. As with any Florida trust arrangement, a dynasty trust is a contract between a trustmaker,…
A Florida trust has more estate planning benefits compared to a will. The most well-known benefits are avoidance of guardianship and avoidance of probate. With a living trust, you convey title and ownership of your…
Many of our estate planning clients own S-Corps. A living trust may have adverse income tax consequences for owners of a small business taxed as a Subchapter S corporation (S-Corp) unless the trust agreement is…
A living trust does not completely avoid estate taxes, but it can help reduce them. Assets in a living trust are still considered part of your estate for tax purposes. Certain types of trusts can…
What Is a Joint Living Trust? A joint living trust is a trust agreement that incorporates the testamentary wishes of both spouses in a single document. The joint living trust agreement provides terms and conditions for…
A living trust does not protect your assets from a lawsuit. A living trust is a “self-settled” trust, which means the person who creates and funds the trust is also a trust beneficiary. Florida law states that…
The Small Business Administration (SBA) has specific procedures for debt collection when a borrower defaults on an SBA loan. When a borrower defaults on an SBA loan, the lender typically sends a notice of default….
A judgment lien is a legal mechanism where a creditor secures their ability to collect against a given piece of property. With a Florida judgment lien, a creditor can encumber your property, including real estate,…
A levy is a collection method used by creditors to collect on a judgment. With a levy, a creditor can get an order directing the sheriff’s office to seize the debtor’s personal property and apply…
Execution and levy is a legal process a creditor uses to collect on a judgment. In Florida, execution and levy use a writ of execution to seize any of the debtor’s assets, including tangible personal…
An offshore trust is one of the best asset protection tools available for U.S. residents. The trust allows you to transfer your assets to an offshore trustee. tHe offshore trustee is not subject to U.S….
A divorce designed for asset protection does not usually protect assets because courts can still find that transfers made according to a marital settlement agreement are fraudulent transfers. Some clients ask me whether getting divorced…
What Is the Corporate Transparency Act? The Corporate Transparency Act (“CTA”) is a new federal law that requires LLCs and corporations in Florida and other states to file certain personal information about the beneficial owners…
Suppose a person is moving to Florida from New York and asks how he can protect his successful business as part of an asset protection plan. The business grosses over $3 million in annual revenue….
Joint ownership of property describes two or more people who own real or personal property together. There are three types of joint ownership in Florida: Each type of joint ownership has different legal consequences for estate…
Quick answer: a judgment creditor cannot take your home. A Florida homestead is completely protected from execution of money judgments. If someone sues you, they can take several steps to collect your assets to satisfy…
People facing a civil judgment often try to protect non-exempt cash by investing it in a Florida homestead. Some debtors seek advantage of the unlimited value of Florida’s Constitutional homestead exemption by buying a new,…