Florida Asset Protection Planning

Why Florida Is A Preferred Destination

September 24, 2004
By Monish Datta

Asset protection planning involves figuring out and applying a lawful series of techniques that protects your assets from claims of future creditors. The techniques are designed to deter potential creditors from going after you, and frustrate them if they do, generally by making it difficult or impossible for future creditors to grab hold of your assets or collect judgments against you.

Asset protection laws differ from state to state, they are amongst the most liberal and debtor friendly in Florida. These laws apply primarily to citizens of Florida and those who own property in Florida. Some residents of Florida own assets located in other states, as well as in Florida,

A Florida resident's personal property is covered by Florida's favorable asset protections laws regardless of where the accounts and assets are held. Many people move to Florida just to avail themselves of the liberal asset protection laws designed to keep people out of the poor house

The following are some examples of Asset Protection strategies that are used while devising plans.

The Florida Homestead, the constitution of Florida protects the homestead of a Florida resident from attack by most creditors.

Family limited Partnerships, is an entity, like a corporation. It can own assets and can conduct most activities that can be conducted by individuals or a regular corporation.
LLC's or Limited Liability company. When a Florida business is sued you can be protected from being sued personally when your business is a Florida LLC.

Other popular devices are Joint tenancy property, Life Insurance, Florida Corporations (in some cases).

There are also many other asset protection devises and strategies that a qualified attorney can help you with. Not every one of the above asset protection devises will protect you in every occasion. You should sit down and speak with an attorney who is qualified in asset protection, collection law and bankruptcy law. Normally only an attorney who has seen how creditors will attack your assets can give you the knowledge needed to protect your assets.