Florida offers a range of protections from creditors for various assets. Key protected assets include primary residence (homestead), retirement accounts, life insurance, annuity proceeds, and wages for the head of the family. These protections are designed to safeguard personal finances from creditors and legal judgments.

List of Protected Assets in Florida

1. Homestead Property

The primary residence, or homestead, in Florida receives significant protection. This includes exemption from forced sale under most circumstances, with no limit on the value of the property protected. This ensures homeowners can maintain their primary residence, even during financial challenges.

2. Retirement Accounts

Florida provides robust protection for various retirement accounts, including 401(k)s, IRAs, and pension plans. These accounts are generally exempt from creditor claims, which helps secure financial stability for retirees.

3. Life Insurance and Annuity Proceeds

Proceeds from life insurance and annuity contracts are protected in Florida. This means that beneficiaries can receive these funds without the risk of them being claimed by creditors, ensuring financial support for families after losing a loved one.

4. Wages for the Head of Family

For individuals identified as the head of a family, up to $750 per week in disposable earnings is protected. This safeguard ensures that families maintain the necessary income for living expenses, even amidst financial obligations to creditors.

5. Personal Property

Florida also allows an exemption for personal property up to a $1,000, including furniture, electronics, and jewelry.

6. 529 College Savings Plans

Florida shields 529 College Savings Plans from creditors. This protection is crucial for families planning for their children’s educational future, ensuring that funds saved for education remain intact and are not subject to creditor claims.

7. Health Savings Accounts (HSAs) and Medical Savings Accounts (MSAs)

HSAs and MSAs receive protection in Florida, ensuring that funds set aside for healthcare needs are inaccessible to creditors. This protection is particularly important for individuals with significant healthcare expenses, providing financial security.

8. Social Security Benefits

Social Security benefits are protected in Florida, meaning they cannot be garnished or claimed by most creditors.

9. Unemployment Compensation Benefits

Unemployment compensation benefits are also exempt from garnishment in Florida. This ensures that individuals who have lost their jobs can still rely on these benefits to support themselves and their families during unemployment.

10. Tenancy by the Entireties (TBE) Property

In Florida, property owned as tenancy by the entireties (TBE) is protected from individual creditors of either spouse. This type of joint ownership, available only to married couples, means that creditors cannot target property held in TBE if one spouse incurs debt.

This protection is significant for married couples as it helps preserve shared assets such as real estate, bank accounts, and personal property, ensuring that these assets remain intact and protected from claims against one spouse individually. It’s a unique form of asset protection in Florida, reinforcing the state’s commitment to safeguarding the financial stability of its residents.

Gideon Alper

About the Author

Gideon Alper is an attorney who specializes in asset protection planning. He graduated with honors from Emory University Law School and has over 15 years of legal experience.

Gideon has helped thousands of clients protect their assets from creditors. Before private practice, he represented the federal government while working for the IRS Office of Chief Counsel.

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