I’ve seen recently several clients who are interested in moving to Florida from community property states including California and Arizona. I recently published a post about the status of a non-debtor spouse’s LLC interest that the couple acquired in Texas before moving to Florida. Other clients have asked about other types of community property assets …
Bankruptcy Debtor Denied Exemption For Self-Directed IRA
A self-directed IRA is a personal IRA plan where the owner can invest IRA funds in assets other than marketable securities, such as real estate. There are companies that provide qualifying IRA plan documentation and who hold title to your customized IRA assets. The self-directed plan provisions require that the owner not use IRA money …
Bankruptcy Debtor Denied Exemption For Self-Directed IRARead More
Using a Foreign State’s Domestic Asset Protection Trust Law in Florida
Some states, not Florida, have statutes that encourage asset protection trusts. These states’ statutes provide that if a debtor establishes an irrevocable trusts for their own benefit the assets that the debtor conveys to his trust are protected from his creditors. The trustmaker must reside or have significant assets in the state where the trust …
Using a Foreign State’s Domestic Asset Protection Trust Law in FloridaRead More
Banks Don’t Have to Help Customers Choose Correct Tenants By Entireties Account
There are many instances of people who incorrectly believed they had established exempt joint marital bank accounts and later found out that the accounts were not properly protected from creditors. Well-established Florida law exempts tenant by entireties accounts at financial institutions from the creditors of either spouse, but not from joint creditors. Some people make …
Banks Don’t Have to Help Customers Choose Correct Tenants By Entireties AccountRead More
Non-Debtor Spouse May Be Liable For Fraudulent Transfer To Entireties Account
I’ve warned many clients against making fraudulent transfers of money to their non-debtor spouse or to tenants by entireties with their spouse. A creditor may get a general money judgment against the non-debtor spouse for the value of assets transferred. The transfer to the spouse risks making the spouse a new defendant in the creditor’s …
Non-Debtor Spouse May Be Liable For Fraudulent Transfer To Entireties AccountRead More
What Happens to Community Property Rights When You Become a Florida Resident?
A client, a married man, acquired and owned a LLC membership interest in his own name while living in Texas. He and his wife moved to Florida. A Texas court entered a money judgment against the wife only, and the creditor moved the judgment to Florida. Texas is a community property state; Florida is not …
What Happens to Community Property Rights When You Become a Florida Resident?Read More
Forming an LLC in Another State May Not Be Smart
Florida debtors often form LLCs in other states because they believe the laws of the foreign state provide better asset protection in the manner of protection of single-member LLCs or more privacy for multi-member LLC ownership. Owning a membership interest in a foreign LLC can have unintended consequences as Florida debtors recently found out in …
Subdividing a Large Lot Within a City To Qualify For Florida Homestead
I have had many clients who did not qualify for homestead protection because their primary residences was situated on a lot over ½ acre in lot size within the City limits. These clients usually ask whether they can claim a homestead exemption on the just the portion of the lot where their house sits if …
Subdividing a Large Lot Within a City To Qualify For Florida HomesteadRead More
Federal Agency Judgment Results in Blanket Trust on All Debtor Assets
Federal agencies are the strongest creditors and are the most likely to overcome asset protection planning. Court decisions involving federal agency collection frequently favor the creditor agency. An example is an unpublished order involving one of my clients who had been sued by the Federal Trade Commission for conducting illegal telemarketing. The telemarketing activity was …
Federal Agency Judgment Results in Blanket Trust on All Debtor AssetsRead More
Is a Green Card Required For Florida Domicile and Exemptions?
Debtors can claim Florida’s asset exemptions only if they are domiciled in Florida. People sometimes confuse the term “domicile” with the term “residence.” A person is a resident of any place where he resides and keeps property. A person may be a resident of more than one state; some people have second and third homes …
Is a Green Card Required For Florida Domicile and Exemptions?Read More
