Asset Protection in Florida
Wealth preservation advice from a Jacksonville attorney
Everyone should consider implementing legal techniques to protect their assets from creditors, including a judgment creditor. For most individuals, significant protection can be obtained by acquiring assets that are exempt from the claims of creditors under Florida law. These assets include:
- Homestead real property. For individuals residing in the unincorporated portions of a county, the homestead exemption applies to one-hundred-sixty (160) acres or less of real property and all improvements used as a personal residence. For individuals residing within the limits of an incorporated city, the homestead exemption applies to one half of an acre.
- Interests in qualified retirement funds which include IRAs, 401k, pension, profit sharing or similar plan.
- Annuities.
- Cash value of life insurance policies.
- Assets owned by a husband and wife as tenants by the entirety, unless the judgment is against both spouses.
For individuals with significant wealth, more complex planning methods may be necessary, including family limited partnerships, irrevocable trusts and offshore trusts.
Other asset protection issues to be considered include—
- Ownership and operation of motor vehicles
- Ownership of any real property other than an individual’s homestead
- Claims incurred in the operation of any business or activity for profit
Todd Watson can assist you in developing an effective asset protection plan.
Section 1031 tax-deferred exchanges
When you sell property, you normally pay tax on the gain. However, a Section 1031 exchange allows the tax on the gain to be deferred. This is also called a like-kind exchange, because it can only be used when the sale of one property is used to directly fund the purchase of another one. Benefits of a 1031 exchange include—
- Postponing and sometimes eliminating taxes on the sale of property
- Having more money available to invest in another property
- Reorganizing your property investment portfolio without paying gains tax
Todd Watson's law office can facilitate a 1031 tax-deferred exchange for you.
Discuss asset protection with a Jacksonville attorney
For a free telephone appointment with an asset protection lawyer in Jacksonville, contact Todd Watson, Attorney at Law, P.L.
