Posted in Asset Protection,Probate & Trust Administration,Tax Law & IRS Defense,Wills, Trusts & Estate Planning

1. Not Understanding the Purpose of Asset Protection: Asset protection will not make you “judgment proof.” Someone can still obtain a judgment against you.  You must distinguish obtaining a judgment and collecting on a judgment, which is typically only done after a judgment is rendered.
2. Waiting Too Long To Begin Planning: Preventative planning is both most effective and least expensive before you have legal problems.
3. Believing That It Is Too Late To Protect Assets: It’s never too late to improve protection. Anything is better than doing nothing.
4. Thinking Creditors are Lazy or Not Smart: Don’t underestimate the skill and intelligence of your adversaries. Creditors and their attorneys are not lazy or thoughtless.  The court system can be a slow process.
5. Failure to Comprehend Vulnerability of Your Business: The shares of stock or membership interests you own are vulnerable to creditor attack.
6. Fraudulent Transfers and Conveyances: You cannot protect assets by giving them to family members.
7. Misunderstanding Salary Exemption: Salary exemptions can be complicated. Don’t be trapped into misunderstanding these concepts, especially for business owners.
8. Confusing Estate Planning With Asset Protection: Asset protection is oftentimes part of estate planning, but a living trust or will does nothing to protect your assets from creditors.
9. Confusing Bankruptcy Law and Asset Protection Law: The new bankruptcy law does not affect Florida’s unlimited homestead exemption and other exemptions outside bankruptcy court.
10. Giving Up Control Over Your Assets: The easiest asset protection plan is to give someone else control over your assets. This is all too often a poor solution.

If you own assets and are concerned about protecting them, avoid making the mistakes mentioned above.  For more information on developing an asset protection plan that is thorough and unique to your particular situation, we encourage you to contact a qualified, licensed attorney.

Posted in Asset Protection,Real Estate Law,Tax Law & IRS Defense,Wills, Trusts & Estate Planning

In a previous blog (click here), we posted about the Mortgage Forgiveness Debt Relief Act (“MFDRA”) and how it had yet to be extended by Congress to cover mortgage debts forgiven in 2014.  MFDRA prevents homeowners who went through a short sale, foreclosure sale, a principal reduction, or some other type of waiver of a deficiency regarding their primary residence from being taxed on the amount of mortgage debt cancelled or forgiven.
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Posted in Asset Protection,Probate & Trust Administration,Wills, Trusts & Estate Planning

A power of attorney is a written instrument pursuant to which an individual (the “principal”) grants to another (the “agent”) the authority to act on behalf of the principal, primarily for financial and business matters.  Powers of attorney and similar instruments are governed by Chapter 709 of the Florida Statutes, also known as the Florida Power of Attorney Act (FPOAA).
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Posted in Asset Protection,Probate & Trust Administration,Wills, Trusts & Estate Planning

Florida Gun Trusts, also known as NFA Trusts, Class 3 Trusts, Title 2 Trusts, or Firearms Revocable Trusts, are a great way to deal with the unique issues of owning, transferring, and possessing gun suppressors, silencers, fully automatic rifles, short barreled rifles and shotguns, or other Title 2 or Class 3 weapons.  Listed below are some key benefits of a Gun Trust:
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Posted in Asset Protection,Business & Corporate Law

Florida law regulates the ownership of a professional limited liability company or professional corporation in an effort to safeguard the public from adverse interests.  See our prior two Blog Posts (LINK 1) (LINK 2) for more information on professional businesses.  Under Chapter 621 of the Florida Statutes, a professional business’s owners may only be professional limited liability companies, professional corporations, or individuals who are duly licensed or otherwise legally authorized to render the same professional service.[1]  Each owner must be licensed or otherwise legally authorized to conduct the professional service that the entity is organized or incorporated for.  For example, under this provision, a Florida attorney, accountant, and life insurance agent are prohibited from forming and operating a single professional entity. 
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Posted in Asset Protection,Business & Corporate Law

Florida has recently amended the law regarding what must be included in the name of professional businesses formed after January 1, 2014.  Below is a brief summary of the changes.  Companies formed prior to January 1, 2014 are not required to update the entity’s name to conform to the new requirements.  However, the entity’s name should still conform with Florida law prior to the recent amendments.  See our prior Blog Post (LINK) on what a professional service corporation or professional limited liability company is for more information on professional businesses.
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Posted in Asset Protection,Business & Corporate Law

Chapter 621 of the Florida Statutes governs professional service corporations and professional limited liability companies.  For an entity to file under this chapter, the practitioner must be engaged in a professional service.  A “professional service” is a type of service to the public that requires the performing individual to obtain a license or other legal authorization before engaging in practice.[1]  Examples of professional services in Florida include certified public accountants, public accountants, chiropractic physicians, dentists, osteopathic physicians, physicians and surgeons, doctors of medicine, doctors of dentistry, podiatric physicians, chiropodists, architects, veterinarians, attorneys at law, and life insurance agents.[2]
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Posted in Asset Protection,Probate & Trust Administration,Wills, Trusts & Estate Planning

Section 736.0708 of the Florida Statutes governs the compensation available to Florida trustees.  Most trust documents provide reasonable compensation to the named trustee.  However, if the trust document is silent on the matter, Chapter 736 provides that the trustee is entitled to reasonable compensation under the circumstances.[1]  Accordingly, a Florida court may award reasonable compensation when the trust documents neglect the issue.
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