If someone obtains a judgment against you, as the result of a lawsuit, your assets will also be at risk. An income-producing asset may be your ownership in a Florida business or a rental property. Asset protection works best when implemented before any legal problems are on the horizon. A corporation in Florida is filed similarly to an LLC in that articles of incorporation are filed with the secretary of state in the state of incorporation. If I have IRA RMD that is FAR in excess of what is needed to support my family, are those excess distributed funds subject to claims of a creditor (eg a judgement in an auto lawsuit)? Steven J. Gibbs, Esq. An important distinction is if something is not appreciating in value or creating income then perhaps it should not be considered an asset. Contact Us / Blog / Privacy & TOU / Accessibility. Wherever you are in this important process, I encourage you to seek professional legal counsel for this endeavor due to the complexity and importance of this area. If there is a chink in the armor of Florida asset protection, the Florida LLC is it. Qualified investment accounts that receive special income treatment by the IRS also receive asset protection under most state laws. Protecting their assets from lawsuits is often a prime motivator. 239-415-7495 info@www.gibbslawfl.com www.gibbslawfl.com. I believe you’ve already answered my question in the above article but would like to confirm. Hello Lynne and thanks for your question. Does IRA account provide the same level of protection as 401k account? Limited partnerships and limited liability companies are used for asset protection of businesses or investment assets. That is really is far as I can go, as any additional “advice” concerning transfers or formalities for rollovers should be handled in a 1-1 review and consultation. jt. Other exceptions may include IRS tax liens and, of course, divorce actions by a spouse (our super-creditors), both of which may be imposed on a Florida homestead. Other than the acreage limitation, there is no monetary cap on the homestead exemption in Florida. The extent of that protection, however, varies. Federal law holds ERISA retirement plans out of the reach of creditors. Before addressing specific methods of Florida asset protection, it is important to get clearer about what is an asset. Hello Larry, thanks for commenting. The distinction is upon the trustmaker’s death, the trust becomes irrevocable and can offer asset protection for the surviving trust beneficiaries. Inheritance is not protected from creditors as an exempt asset class. There are many other elder law asset protection strategies that may be considered on a case by case basis if Medicaid qualification is needed. I learned more reading this than I ever would have imagined. Medicaid trusts in Florida or income only trusts are utilized for elder law asset protection, which often focuses on keeping family assets outside of the reach of Florida Medicaid and these are subject to the 5 year look-back period for Florida Medicaid transfers. When we’re talking about Florida business entities, we’re talking about entities that are based in in Florida. I’ll then offer an overview of various asset protection strategies used in Florida. Hello Jag, you’re welcome and thanks for commenting. According to Section 222.14 of the Florida statutes they appear to be. It can range from a lawsuit related to a negligent act that you performed, such as causing a car accident, to a lawsuit related to the foreclosure of property for which you have stopped paying the mortgage. Now you can get the insight needed to take charge of your family wealth protection plan and your future. By definition, these trusts are difficult to change, once formed, and this independence from the individual is what allows the asset protection. If you are a business professional or if you own a business, you could be hit by any of the following: 1. The latter, IRS, is somewhat self-explanatory because, as a federal entity, the ability of the IRS to pursue assets is somewhat unlimited when compared to your “non-super” creditors, including the ability to place liens upon homestead property. Every state provides for the filing of corporations, as it is an important incentive for local businesses as well as an important revenue stream. In the United States, there are more than one million lawyers, each with a license to file lawsuits against deep-pocket defendants. Homeowners’ association actions for the community in which the homestead is located are also often secured by the home. Traditionally, this structure has also placed all of the liability of the general partner for decisions made and actions taken on behalf of the partnership. It’s important to plan for your retirement, and creating an Individual Retirement Account (IRA) can be one of the best ways to do so. There are several strategies you may employ to help protect your assets from a civil lawsuit. Common law is law established by appellate judges in individual cases. I forwarded your information to our Legal Director Gene Ross to reach out to you to schedule. Enter your email address below get access to this free eBook. This is a quality article. From the standpoint of Florida asset protection for IRA accounts, what we wanted was for inherited IRA accounts to be exempt as retirement savings. Various generic exemptions, such as health aids, medical savings accounts, and unemployment benefits. Be reached by creditors unemployment benefits stuff as well to Wage garnishments and unpleasant... 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