Not all annuities owned by Florida residents are protected from their creditors. Protection does not depend upon the type of annuity or the issuer of the annuity, but asset protection does depend upon the state where the annuity was issued to the debtor. People who purchased annuities in another state…
Exempting wages from garnishment under Florida’s head of household exemption is difficult for self-employed debtors. Business owners of sub-S corporations typically compensate themselves as employees and as owners. The owner pays himself salary as well as profit distributions. Self-employed business owners limit salary in order to minimize employment taxation, and…
Totten trusts and UTMA(“uniform gift to minors”) financial accounts have different consequences for asset protection Totten trusts are not protected from creditors because the accounts could be revoked or invaded by the parent, whereas the UTMA accounts are protected because deposits made to these accounts are legally irrevocable. The asset…
There have been many blog posts dealing with tenancy by entireties bank accounts. I have often explained that accounts opened by married couples as joint tenants with rights of survivorship are presumed to be owned tenants by entireties under Florida law.
Retirement plans are protected from creditors in Florida, except when the “retirement plan” is not a retirement plan.
Section 222.21 of the Florida Statutes exempts retirement plans that have been pre-approved by the IRS as exempt from taxation pursuant to Section 401(a) of the Internal Revenue Code. In a recent bankruptcy proceeding the court considered a debtor’s claimed exemption of his tax deferred Keogh plan.
I consulted today with a client who is the beneficiary of a workers’ compensation award. He currently receives monthly workers’ comp payments, and he expects an additional lump sum settlement in the near future. A creditor recently received a large court judgment against this client. The client wanted to know…
A husband purchased a large life insurance policy naming his wife as beneficiary. The policy accumulated cash value. The husband and wife had joint creditors. The husband died and the insurance company paid the policy proceeds to the surviving spouse. The surviving wife asked me if the creditors can go…
I received an interesting question about whether Florida Statute 222.25(3) exempts all income tax refunds.
What Is an ITF Bank Account? An ITF bank account is an account at a financial institution that is held by one person in trust for someone else. A properly designed Florida ITF account or gift-giving plan can help minimize estate and income taxes, and it can also remove property…
