It has taken you a lifetime of planning and hard work to get to the financial position you are in today. However, if someone sues you and wins, you could lose all you have acquired.
There are ways to shield your wealth from creditors and lawsuits. Contact a Coral Gables asset protection lawyer to learn about legal strategies to ensure your wealth is not vulnerable to future creditors. Our experienced estate planning attorneys are on your side and ready to help in any way we can.
Assets refer to everything that contributes to an individual’s net worth. Real estate, bank accounts, retirement and investment accounts, interests in a business, and any vehicles and physical property are all assets. A Coral Gables attorney could help an individual determine which assets they should protect, depending on their exposure to risk and personal wishes.
Anyone to whom an individual or business owes money is a creditor. Creditors can be vendors, business partners, and anyone with a viable legal claim, such as someone injured in a car accident in which the other individual was at fault. The IRS and Florida Department of Revenue are also creditors.
When an individual or business does not or cannot pay a debt, the creditor can get a judgment, which is a legal declaration that the money is owed. The judgment allows the creditor to attach the debtor’s assets, which could mean taking the money owed from a bank account, putting a lien on real estate, or seizing property like a boat, car, or piece of art. Asset protection strategies are legal ways for a person in Coral Gables to shield assets from creditors’ judgments.
Many people can benefit from employing one or more asset protection strategies. The forms of asset protection that would be most effective will depend on the extent of a person’s holdings, how their wealth is held, and any specific risks they face.
When an individual owns a home and uses it as their primary residence, the Florida Constitution entitles them to homestead protection. A creditor cannot force a state resident to sell their family home to pay a debt. The exception is that a creditor holding a mortgage can foreclose and seize the home.
Florida law protects qualified Individual Retirement Accounts (IRAs), Roth IRAs, and Keogh accounts from creditors. Maximizing contributions to these accounts is an essential part of any asset protection strategy.
Limited liability companies (LLCs) are a popular legal form for businesses, but an individual or couple could establish an LLC to hold property such as real estate, collections, or other personal property. When an LLC holds property, an individual’s creditors cannot attach it.
Family Limited Partnerships (FLP) are another popular legal form for businesses or to act as holding companies for property. FLPs are useful for asset protection and estate planning, but they must be set up carefully to be effective. Anyone considering establishing a FLP should work closely with an experienced Coral Gables asset protection attorney.
Property placed in an irrevocable trust is titled in the name of the trust, and creditors cannot reach it. However, the grantor usually cannot modify or dissolve the trust once it has been established and a trustee must manage the property in the trust. Florida Statute § 736.0412 allows the beneficiaries of an irrevocable trust to modify its terms after the settlor’s death in some cases.
Annuities, life insurance, and other financial vehicles can also protect assets. These options can be especially attractive for people concerned about having enough money in later years or leaving funds to their loved ones.
It is wise for an individual to consider protection strategies as soon as they begin accumulating assets. Once a judgment has been entered, the debtor will be liable for payment – and any assets that were not safeguarded on the day the judgment was entered are at risk.
Someone who tries to move assets to a protected vehicle to evade an existing judgment risks civil penalties and even criminal charges in some cases. A seasoned attorney could help an individual or business in Coral Gables respond to a judgment and take steps to safeguard remaining assets against future liabilities.
The litigious environment that prevails today puts all your assets at risk if you lose a lawsuit. Likewise, you could lose what you have if you accumulate too much debt and cannot pay it in a timely manner.
There are numerous legal strategies that can limit your risk. Contact a Coral Gables asset protection lawyer today to learn more.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
(305) 250-9917