The Homestead Exemption in Florida 

One of the most important forms of asset protection in Florida is the state’s homestead exemption. Under this exemption, you can protect your primary residence from potential creditors during your lifetime and after you pass away. The homestead exemption is outlined in Florida’s Constitution and it provides some of the strongest protections in the entire country.

Trusts and Asset Protection 

Another common asset protection strategy is the creation of trusts. Trusts are legal documents that can hold many different types of assets. Once you have established a trust, you then fund it with the property. Funding a trust involves retitling the asset from your name into the name of the trust. It is critical that you fund the trust as soon as possible, as the property is only protected once it has been retitled to the trust.

Establishing an LLC 

A limited liability company (LLC) can also protect your assets from creditors and legal judgments. These business structures can protect your property in two ways. The first is that it protects your property from the liabilities of the company. For example, if a creditor filed a lawsuit against the LLC to recover a debt, the creditor could not try to seize your personal property because it does not belong to the LLC.

Timing and intent are critical in the asset protection process. Fraudulent transfer laws have been enacted to stop individuals from transferring property with the intention of delaying, hindering, or defrauding creditors.

Marital Assets 

Under state law, marriages are treated as one legal entity. Legally this is referred to as tenancy by the entireties. Due to this, when assets are jointly owned by a couple, a creditor of just one of the spouses cannot target the joint property. Other protected assets include retirement accounts, life insurance, annuities, head of household wages, and disability insurance benefits.

Our Asset Protection Lawyer in St. Petersburg Can Provide Sound Legal Advice 

You have worked your whole life to amass your property and wealth. At Legacy Protection Lawyers, LLP, our St. Petersburg asset protection lawyer can help ensure they are protected for you and your family for years to come. Call us now at 727-471-5868 or contact us online to schedule a consultation and to get the legal information you need.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

Digital Assets are Password Protected

The majority of digital assets are protected by a password. As such, one of the most important ways to protect them is to preserve and protect the passwords. The best passwords are strong and include as many letters, characters, and symbols as a platform will allow. The longer your password is, the more difficult it is for others to guess. Long passwords, particularly those with a variety of different character types, are also harder to hack.

Storing Passwords Properly

Just about everything needs a password today, from your online banking account to the social networks you use. Since you should use as many characters as a platform allows, and because they all vary, you may not be able to remember them all off the top of your head. As such, you may have to create some type of list for them.

Certain models of electronics, such as the iPhone, will allow you to store your passwords on the cloud. You need just one password, or even your face or fingerprint, to access them. If this feature is not available, you can create a manual list but you must ensure it is kept in a secure place. This secure place may be in a safe in your home or in a safety deposit box. Wherever you keep yours, it is important to make sure you can access it regularly so you can update it as needed.

Include Digital Assets in Your Estate Plan

Among all the different types of property you should include in your estate plan, it is important that you do not overlook digital assets. Remember to include not only financial digital assets, such as your PayPal or Bitcoin accounts, but also sentimental digital assets. These include things such as the photos and videos of your family you may have on Facebook or Instagram. You may want to pass these along and keep them in the family, as well.

Also include in your estate plan instructions for your personal representative. For example, if you have a list of passwords somewhere, you should include details about how your personal representative can find the list, and how to access the list.

Our Asset Protection Lawyer St. Petersburg Can Provide Legal Advice

At Legacy Protection Lawyers, LLP, our St. Petersburg asset protection lawyers can help you create a thorough estate plan that protects what is most valuable to you and your family. Call us now at 727-471-5868 or contact us online to schedule a consultation and to learn more about your legal options.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/0732.html

So how exactly do you “fund” a trust? In this context, funding a trust generally means transferring title to certain assets. In other words, if you create a revocable living trust as part of your own estate plan, you need to re-title any assets that in your individual name to the trustee of the trust (which in most cases will also be you). This is more than a legal formality. It reflects a change in ownership that will keep those assets out of your probate estate after you die.

Here are some examples of assets that are used to fund a Florida revocable living trust:

Real Estate

For many people, their home is their most important asset. Funding a trust with real estate means filing a new deed. Specifically, you need to file a quit claim deed transferring title to the trustee. This deed must be recorded just the same as if you were selling the property and it typically needs to include a copy of the trust (or at least an abstract, or summary of its key provisions). If your house is subject to a mortgage or a homeowner’s association, you may also need permission from the lender or association, respectively.

Tangible Personal Property

There are many forms of personal property that are also subject to some sort of formal title. For example, if you own a car or boat, there is a title for that vehicle. If you want that vehicle in your trust, you need to file a new title document listing the trustee as owner. As with a house, if the vehicle is subject to a loan you may need to obtain permission from the lender before making the transfer.

But what about personal property that has no formal title? Consider all of the items in your home such as furniture, clothing, or electronics. Generally speaking, you can transfer title to such property simply by signing a document describing such property and stating you are transferring those items to your revocable living trust.

Intangible Personal Property

Much like real estate, you can usually transfer intangible personal property like bank accounts and securities by re-titling the account in the name of the trust. There are other intangible assets, however, where it may make more sense to simply change the designation of a beneficiary to the trust, such as with a life insurance policy or retirement account.

Before creating or funding any trust, it is best to consult with an experienced St. Petersburg asset protection lawyer who can advise you of the potential legal and tax consequences. Contact Legacy Protection Lawyers, LLP, today to schedule a consultation with a member of our estate planning team.

There are various reasons why new businesses fail. Lack of monetary resources, poor management, inability to compete with other major brands or service providers, inadequate leadership, and others. Recently, an increasing number of entrepreneurs consider it to be safer and more profitable to purchase an existing business rather than create a start-up.

However, there are various things to consider if you are planning to purchase an existing business that is as profitable and financially sound, or as the seller claims it to be.  Hiring an experience and detail-oriented attorney will help and offer practical guidance and personal advice in addition to legal advice.

Due Diligence When Buying a Business

Buying a business in St. Petersburg or other parts of Florida is not a decision you should make lightly or without weighing all the pros and cons. When you have made an offer to purchase a business, a purchase agreement is created, and then the process of due diligence begins.

During the due diligence process, your lawyer can be very helpful because he or she will review all available financial information and documents to make sure that (a) the business is exactly how the seller represents it, and (b) that you will make money from this business in the long run.

The process of due diligence when purchasing a business includes an examination of the following elements:

• The company’s accounts and financial statements from the past several years
• Auditors’ and credit reports
• An analysis of its expenses
• Information of any debts, leased equipment, liabilities, purchases, capital sales, and involvement in business succession
• Copies of mortgages, titles, leases, deeds, and insurance policies
• All tax records
• All owned intellectual property, trademarks, copyrights, and patents
• Copies of all permits and licenses
• An overview of all existing products or services
• All news articles and other publicly available materials about the business
• The company’s marketing materials, budgets, and advertising programs
• A list of all employees including their salaries, insurances, benefits, retirement plans, and all other related information
• A history of any labor disputes or pending lawsuits
• A list of the company’s largest customers

What to Consider When Purchasing a Business

Other things to consider when purchasing a Florida business are:

1. It is the responsibility of the buyer to make sure that the seller has paid all of the business’s sales taxes;
2. The ability to obtain any amount of financing from the seller;
3. Signing a non-competition clause that would prevent the seller from competing with the sold business after the sale;
4. Whether the seller offers to train you – as the new buyer – on how to run the business successfully; and
5. Whether there will be the right to terminate the purchase agreement for any reason during the due diligence process with the option of a fully refundable deposit.

Purchasing a business is a risky, but often rewarding, endeavor.  You should hire an experienced business attorney who focuses on asset protection and all phases of the purchase. Contact us at 727-471-5868 for the St. Petersburg asset protection lawyers at Legacy Protection Lawyers, LLP, to get a case evaluation.

https://www.legacyprotectionlawyers.com/asset-protection-planning-strategies-in-florida-to-shield-your-assets-from-future-creditors/

Who Can Benefit from Asset Protection Planning?

Because of our litigious society, everyone runs the risk of being sued.  It is becoming increasingly common for asset protection to be part of the most basic estate plans.

In recent years, the amounts awarded in jury verdicts have skyrocketed across the country, which is why it is critical to plan for the worst.  Moreover, the number of personal injury lawsuit filings have increased.  Asset protection planning can help you take advantage of legal exemptions that may insulate your assets from potential future creditors and make it more difficult for those creditors to collect on your assets.

Thus, asset protection planning is the legal process of restructuring your financial holdings to prevent future creditors from taking your assets. Asset protection strategies allow you to deal with creditors from the position of strength.

Asset Protection Strategies in Florida

Like most other states, Florida has asset exemptions designed to protect real estate, bank accounts, personal property, businesses, and other assets by placing them beyond the reach of future creditors.

Luckily, Florida has some of the most generous asset exemptions. These are the most popular asset protection strategies – or, in other words, exemptions – to shield specific holdings from creditors.

1. Homestead. Under Florida law, the homestead – your primary residence – is protected from most judgments filed against the owner. Unlike other states, Florida law does not limit the homestead exemption to any dollar amount.
2. Tenants by the Entireties Ownership. A husband and wife in Florida are eligible for tenancy by the entirety ownership, which is a specific form of joint ownership available only to spouses. In other words, when spouses own property under the tenancy by the entirety doctrine, that property cannot be seized or reached by a party obtaining a judgment against either spouse. However, the property is not exempt from judgments obtained against both spouses. Also, entirety ownership does not protect against joint creditors and is valid only as long as the spouses are married.
3. Wages. If you are the head of the household, your wages are generally exempt from garnishment or attachment under Florida law. Also, any disposable earnings deposited into a financial account of a head of household are exempt for six months as long as the funds can be traced and classified as wages.
4. Retirement Plans. Specific types of retirement plans are also protected from creditors in asset protection planning. Money held by or payable to a participant in these particular retirement plans is exempt from lawsuits or claims of the participant’s creditors.

Other Asset Exemptions Available in Florida

There are a number of other asset exemptions available under Florida law, including:

• Annuity contracts
• Life insurance policies
• Cash value of life insurance policies
• Disability income
• 529 college savings plans
• Prenuptial Agreements
• Irrevocable trusts
• Gifts

Let our St. Petersburg asset protection lawyers review your particular case to identify all available exemptions to help shield your assets from creditors. Call at 727-471-5868 Legacy Protection Lawyers, LLP, to discuss your asset protection needs.

https://www.legacyprotectionlawyers.com/asset-protection-as-part-of-your-estate-planning/

What Does Asset Protection Mean?

Asset protection involves keeping your property and other assets safe from someone who wins a judgment against you.  For example, someone might file a lawsuit against you for an act of negligence that is not entirely covered by your insurance. The successful party might decide to pursue your personal assets as a way to cover the remainder of the judgment.

One reason you shouldn’t start working on protecting your assets when you are facing potential creditors is because there are laws that keep people from doing just that. Judgment creditors have rights which means you cannot move assets in an attempt to defraud or delay the inevitable.

Having the necessary liability insurance coverage can go a long way in helping protect your assets as well. If you own multiple properties and have a business, you want to ensure you have high limits on your auto insurance liability coverage. You’ll likely want to consider an umbrella policy that covers you for additional liability above your underlying policies. Paying a few hundred dollars of months in premiums is often the safer bet in case you do get sued.

Asset Protection Tools

Some of the recommendations we have for clients in order to protect their assets include premarital agreements, family limited partnerships, and LLCs. Premarital agreements can be used to keep your separate property protected in the event of a divorce or death. This is an especially popular option for people who are entering a second or third marriage and have children from a previous relationship.

Family limited partnerships (“FLP”) are often beneficial to those who run a family business and want to ensure it stays in the family. The FLP is a tool that can assist with generational ownership transfer. Older generations would act as general partners while younger ones are limited partners. This allows you to own important property without the potential risk of capital gains.

A Limited Liability Company (“LLC”) is a popular structure for owners who are looking to separate themselves from their assets. LLCs offer limited liability protection provided you do not commingle your personal and business funds or commit an act that would negate the liability protection of an LLC.

Contact a Florida Estate Planning Attorney

If you need assistance with your estate plans in Florida, and how to properly protect your assets, contact Legacy Protection Lawyers, LLP today to schedule a consultation.

https://www.legacyprotectionlawyers.com/why-you-need-a-florida-premarital-agreement-as-part-of-your-estate-plan/

It’s true that Florida is one of the states with the highest divorce rate, but a prenuptial agreement doesn’t necessarily only have usefulness in the event you do ultimately get a divorce. Do not view a prenuptial agreement as the lack of trust in you by your partner. It’s important to start considering an estate plan as soon as possible, even when you don’t necessarily have the assets you might think are necessary to warrant one. Speaking with a St. Petersburg estate planning attorney can help. If you are considering drafting a premarital agreement, or your soon-to-be-spouse has presented you with one, it’s important to have your own legal counsel review it.

Here’s a look at some of the reasons why a Florida premarital agreement can be an important part of your estate plan.

Premarital Agreements Protect Your Future Assets

Premarital agreements allow you and your partner to decide how you want your assets to be classified once you are married. Absent any type of agreement, assets acquired during the course of the marriage (or appreciation of assets brought into the marriage) may become marital assets in most cases. If you each have assets you would like to be kept separate in the event of death, you would need to have that spelled out in your agreement.

Premarital agreements can also protect your spouse from debts. Perhaps you are currently going to college or are finishing up an expensive graduate degree. Rather than leave your spouse on the hook for that bill in the event you pass away, there are options to include what debts remain separate property.

Closely-Held Family Businesses

Maybe you or your spouse are part of a closely-held family business. In this scenario, it’s pretty typical that the family owners require only family members to be owners. In the event of a divorce, it would mean a non-family member is working in the closely-held operation. There are options for provisions in the legal business documents that discuss how to handle these situations, or you can have a prenuptial agreement that discusses the non-family member giving up their interest and rights in the event of a divorce.

Prenuptial Agreements are Important for Second Marriages

With people living longer, some choosing to divorce after many years together is not so uncommon anymore. Perhaps you and your new love both are entering into a second marriage with a lot of separate assets. It’s a wise idea to make the determination before you get married on what property you want to go to whom. This is especially important to couples who have children from prior marriages. Your prenuptial agreement will ensure they are provided for as you intend.

Contact a St. Petersburg Asset Protection Attorney Today

If you have questions or remaining doubts on whether a premarital agreement is right for you, speak with a St. Petersburg asset protection attorney first. Contact Legacy Protection Lawyers today at 727-471-5868 to schedule an initial consultation.