– Florida’s homestead exemption protects primary residences on land of half an acre or less in a municipality or 160 acres or less in other areas from creditor judgments. However, this protection may not apply to properties with mortgages or to second homes and investment properties.
– Most retirement accounts like 401(k)s and IRAs are exempt from creditor judgments in Florida, but inherited IRAs may not be fully protected.
– The cash surrender value of a life insurance policy and the proceeds paid to a beneficiary upon the insured’s death are exempt from creditor judgments in Florida. – Establishing trusts can provide added protection for high net worth clients by transferring assets into irrevocable trusts.
– Assets in trusts may be protected from creditor judgments, but it’s important to work with a knowledgeable attorney to ensure proper structuring and avoid fraudulent transfers.
– While assets in trusts are generally protected, there are exceptions such as certain types of debts like child support, alimony, and taxes.
– High net worth clients facing potential judgments should consult with an experienced Florida attorney to understand their options and develop a comprehensive asset protection plan.
– Proactive measures, such as the use of trusts and other legal instruments, are essential for high net worth clients in Florida to safeguard their wealth and achieve long-term financial goals.
https://www.pfhglaw.com/asset-protection-and-trusts-for-high-net-worth-clients-in-florida/
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