Are there any limitations on asset protection planning?

Yes, there are restrictions to asset protection planning in Florida. Asset protection planning is generally used to protect assets from creditor claims, bankruptcy, lawsuits, and divorces. However, not all assets can be shielded from creditors and the law. Florida law limits the protection of certain assets and does not allow people to hide assets from creditors or debtors. For example, property transfers made within two years before a lawsuit or other creditor claim are not protected and may be voided by a court. Furthermore, transfers of assets solely for the purpose of defrauding a creditor are not effective. People cannot circumvent the valid claims of creditors by placing assets in trusts or giving them to family members. Moreover, the law states that people cannot use asset protection planning to hide assets from the government for unpaid taxes. In terms of bankruptcy protection, Florida law limits some of the exemptions that can be used to shield assets. For instance, individuals are restricted in how much equity they can have in a home. Additionally, personal property such as vehicles, boats, and artwork is subject to federal and state bankruptcy exemptions. Although people can use asset protection planning to some degree in Florida, it is important to contact a qualified attorney to make sure all your legal rights and requirements are met.

Related FAQs

What is an inter vivos trust?
What is the difference between asset protection and estate planning?
What are the benefits of asset protection planning?
What types of assets can be protected by asset protection law?
How do I find a qualified asset protection attorney?
How can I protect my investments?
What is a trust protector and how can they help in asset protection planning?
Can an asset protection trust help me avoid probate?
What is asset protection law?
What is the difference between asset protection and asset management?

Are there any limitations on asset protection planning?

Related FAQs

Related Blog Posts