What Is Asset Protection?
Asset protection is a very important part of estate planning, as it involves using legal strategies to protect your property from being seized by legal judgments and potential creditors. Many people think that using asset protection strategies is only for the wealthy, but this is not true. Business owners and other individuals who want to preserve their assets and protect them from unforeseen claims can also benefit from asset protection. In Florida, the statutes, constitution, and judicial decisions made over the years have provided a framework for all residents to effectively protect their assets.
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. Your interest in the LLC is also not subject to personal judgments. So, if a creditor sued you personally, your interest in the LLC could not be used to repay the debt.
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
