The short answer is no—a living trust does not protect your assets from a lawsuit. Since you maintain control over the assets in a revocable living trust, they remain vulnerable to creditors, legal judgments, or…
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,…
The Florida Constitution protects a person’s homestead from forced levy or sale by judgment creditors. The protection applies if the home is occupied by either the judgment debtor or the debtor’s family. In other words,…
If a business is facing financial difficulty, the business owner is usually concerned about what will happen to the business assets and their personal assets if the business can’t pay its lenders. The inability to…
Bank accounts owned by a married couple are protected from the creditors of either spouse if the account is owned as tenants by the entireties. When a married couple opens a new bank account, they…
A small estate affidavit in Florida is a step in a summary administration, which allows for the distribution of a deceased person’s assets without the need for probate court. This process is typically used when…
Most drivers in Florida carry auto insurance. But sometimes the amount of this insurance is not enough to cover the injured person’s medical bills and loss of income. What happens if the car accident claim…
I got a call from a Florida businessman who owned a business in Jacksonville which had been sued. The court awarded a judgment against the business, but there is no judgment against the owner personally. The…
Trusts have many purposes, including avoiding probate, reducing estate taxation, or protecting assets from creditor risk. The type of trust and the terms of trust depend on the priority of various planning goals. When it…
An entrepreneur builds a profitable business with many years of hard work, long hours, and some luck. Dreaming of an exit and comfortable retirement, he makes the business available for sale. A larger company makes a…
Many people moving to Florida have previously made a will or created a living trust. Is their existing will or trust valid in Florida? Should they make a new will or amend their living trust?…
The Bureau of Alcohol, Firearms, and Explosives (“ATF”) issued a new rule (Rule 2021R-08F) addressing stabilizing braces used to convert pistols into short-barreled rifles, defined as a rifle having a barrel of fewer than 16…
A vacation home LLC is a family business that allows a vacation home owner to pass down their property, specifying how the property can be used and how decisions will be made. Many people from…
Protecting real estate after a lawsuit is filed against you is relatively difficult. Creditor collection remedies targeting real estate are easy and effective, and that real estate is fixed in place and cannot be moved…
Most withdrawals or distributions from retirement accounts can be protected even after being deposited into a bank account. The protection is dependent on state law and proper asset protection design. IRA, Pension and 401k Retirement…
In Florida, a trust protector is an individual or financial institution named in the trust agreement that facilitates the administration of a trust. Having a trust protector is not required—it is an optional feature of…
Landlords who lease residential or commercial property to tenants should be concerned about liability stemming from the tenant or guests of the tenant. For example, a tenant or a guest of the tenant could become…
Summary administration in Florida is a simplified process that provides a cheaper and quicker way to wind up a deceased person’s assets compared to formal probate. In order to file summary administration, (1) the value…
In Florida, a power of attorney ends after the death of the principal. A power of attorney is a legal document provided by Chapter 709 of Florida law that allows one person (called a “principal”)…
Sometimes clients want to know if their employee benefits can be subject to wage garnishment. The answer is no. Employee benefits cannot be garnished through a wage garnishment in Florida. Court Interpretation Florida courts have…
Suppose an employee has a stock purchase plan with his employer under IRS Code 423. The employer’s stock is publically traded. The plan gives the employee the option to receive stock in the employer company…
Tenants by entireties bank accounts can be tricky. Florida law provides that a joint marital bank account is presumed to be an exempt tenancy by entireties account unless there is contrary evidence. The issue is…
Inheritance of a Florida homestead is fast and easy. A Florida homestead is not subject to probate. Probate proceedings involve only assets subject to creditor claims. The Florida homestead is exempt from creditors, so it…
What is an S Corp? Some people set up offshore LLCs and foreign trusts to protect their ownership in a U.S.-based business. Most small businesses, whether they be corporations or limited liability companies, are arranged…
Many Russian oligarchs own homes in Florida. Even Vladimir Putin himself this week called out Russians “who have a villa in Miami or the French Riviera.” A reporter called me this week and asked if…
In most cases, stocks and brokerage accounts can be garnished by a creditor with a money judgment. However, sometimes a brokerage account may be exempt from garnishment due to federal or state law. Brokerage Garnishment…
In Florida, the owner of a vehicle can be held liable for a car accident caused by someone else driving their car. However, the liability is limited to $100,000 per person for bodily injury, but…
Suppose a person is subject to a relatively small money judgment owed to a credit card company. In this example, the judgment debtor receives monthly child support payments from her ex-husband. She accumulates the child…
Florida residents that own real or personal property in other states often wonder whether Florida’s generous exemptions from creditors can be asserted in courts located outside of Florida. For example, suppose a judgment debtor has…
Community property is a system where property acquired during the marriage is considered to be owned jointly by both spouses. Community property states use the law to classify all assets, including income, real estate, personal…