Florida Asset Protection Methods
Every dollar you make, every asset you possess is at risk in this depressed economy. Creditors, litigators and other vultures are lying in wait, looking to pounce on unprotected assets. Anyone with an income wears a bulls eye on their back.The only certain way to protect your assets from these leaches is to setup a comprehensive asset protection plan.30% of all devastating law suits can be avoided with an asset protection plan. There are several simple things a person can do to protect his or her assets and anyone can utilize any or all of the following techniques.
The first thing you should do is remove your name from ownership of your assets, while maintaining control of those assets. You want to be rich but look poor.
Created a limited liability company (LLC) will accomplish this goal. A personal creditor cannot touch the shares of an LLC. Your LLC shares are protected from creditor liens. Judgment holders are limited to merely owning a charging order against distributions made by the LLC.The creditors won’t be able to grab any of the LLCs assets. They can’t even touch your salary (without and order of garnishment) , nor any of the assets bought or sold through the LLC. As long as you avoid any distributions, your assets are completely shielded.
Another way to beat the vampires is through an irrevocable trust. With an irrevocable trust, you technically no longer own the assets and therefore no debts can be levied against them. Through an irrevocable trust you can retain control,while transferring legal ownership to anyone you choose. In addition, the content of the trust do not need to be listed in an asset sheet, since they are no longer your assets. While shares of an LLC must still be listed on an asset sheet, those shares are fully protected.
Another method is to convert your assets to other creditor-exempt vehicles, such as annuities, IRAs homestead properties, pension plans and life insurance policies. Homestead property, annuities, IRAs, pension plans and life insurance policies are the most common creditor-exempt entities.
For Florida residents, the most convenient vehicle of asset protection is through the Florida Homestead statute, since any value added to a Florida homestead is protected. The only creditors that are able to attach a lien to your homestead property are those creditors that hold direct liens resulting from work done on your property, or the property itself.
The three most common liens of this type are mortgage liens, Federal tax liens, Association liens, and mechanic’s liens (money owed to someone you hired to do work on your property).
The cash value of an life insurance policy of a Florida resident is also immune to creditor claims as long as the death benefit passes to a beneficiary and not the decedent’s estate.
The proceeds of an annuity contract issued to a resident of Florida are also not subject to the claims of creditors.
Yet another technique is to make your assets less attractive to parasites.
We are able to do this through “equity stripping”. By placing liens on assets makes them appear more like a liability. You don’t actually have to go to a bank and take out a loan. Equity stripping doesn’t have to cost you any additional money. You can simply have one of your out-of-state LLCs create a Note for more than your property is worth. When a creditor or litigator views your assets, they will see and “under water” property, one that is buried by a loan worth more than the asset itself.
Fifty million law suits are filed each year. Statistically, each of us will be sued five times during our life-time. An asset protection plan can make the difference between brushing them off or being crippled by them. For the sake of your family and your peace of mind, the time to plan is now.
For more information about asset protection techniques, please contact the Florida asset protection attorneys of Wild Felice & Partners at 954-944-2855 or via email at email@example.com . Let us protect what you value most.