Asset Protection
As top asset protection attorneys in Pensacola, Florida, we specialize in helping our clients keep more of their hard-earned money through a number of effective legal strategies. Need help protecting your wealth? Call the Medley Law Firm at (850) 607-7890 today.
If you start researching asset protection online, you’re bound to run into at least a few articles that try to convince you to do it yourself. Let’s be clear—asset protection is not a DIY project. Without help from an expert, you’re almost guaranteed to make mistakes that leave you vulnerable to creditors and liabilities.
Medley Law Firm: Asset Protection Attorneys In Florida
Sometimes it seems like no matter how large or modest your estate, there’s always someone who wants a slice of the pie. In some regards, that’s true; however, it’s not always a person.
As you accumulate wealth throughout your lifetime, you will be vulnerable to taxes, creditors and potential lawsuits. And unfortunately, it doesn’t end when you pass away; the family members and loved ones who inherit your estate will also be faced with trying to protect the assets you worked hard to save.
If you’re like most people, that isn’t exactly a comforting thought. You want to be able to rest in the knowledge that your loved ones will be provided for after you pass. Luckily, there are ways to protect their financial future by working with an asset protection attorney.
At the Medley Law Firm, we know how important it is to leave a legacy. Our legal experts may be able to help you protect your wealth from outside claims and transfer more of it to the people you love. Keep reading to learn about the tried-and-true legal strategies that can benefit you.
Do you need a legal expert to help you find financial security? We want to hear from you! Contact us online to schedule a case evaluation with an asset protection specialist.
What Is Asset Protection?
Estate planning, in simplest terms, is essentially organizing all of your assets in the way that’s most advantageous to you. Asset protection is a subcategory of estate planning that focuses on guarding your wealth against creditors, taxation, seizure and other losses.
Asset protection isn’t just for individuals; companies also need asset protection plans, perhaps even more. An asset protection plan insulates your assets through legal means, helping individuals and organizations avoid illegal attempts to do so, such as through fraud, concealment and tax evasion.
It’s important to note that asset protection plans are most effective when implemented before a claim or liability is leveled against you. That’s why consulting with an attorney before you’re in legal trouble is so important.
Florida Asset Protection Strategies
In Florida, there are several different ways to shield your assets from creditors. Which approach or combination of approaches you choose will depend on the particular details of your legal situation. Here are a few strategies that your lawyer might recommend:
- Minimize your risks. The best way to guard your wealth is to minimize risk and liability. For example, a married couple shouldn’t expose themselves to joint liability by doing something like co-signing the same loan.
- Select the appropriate insurance. One of the best ways to protect against potential liability from vehicle ownership is to have substantial liability insurance with umbrella coverage. If you work in a profession that’s prone to lawsuits, it’s also crucial to maintain a professional liability insurance policy.
- Consider becoming tenants by entireties. In Florida, jointly owned marital assets that were acquired during a marriage can be owned as “tenants by the entireties.” When spouses own property as tenants by the entireties, neither one can sever the property without the other’s consent, meaning a creditor also can’t force the non-debtor spouse to transfer or encumber it.
- Form a Limited Liability Company (LLC). LLCs are a common component in business owners’ asset protection plans and are used to form most small businesses.
- Use the head of household exemption. A credit can use wage garnishment to collect money they’re owed, taking up to 25% of the debtor’s wages. However, Florida law protects the salary and wages of a debtor who is considered head of the household. Of course, there are exceptions, so it’s important to confirm eligibility with your lawyer.
- Choose the right estate planning strategy. If you leave assets to your children that are subject to judicial probate, any of your heirs’ creditors may try to claim that heir’s share of the estate. However, if you were to leave assets in a properly drafted testamentary spendthrift trust, a beneficiary’s creditors would be unable to reach them.
In addition to these, your asset protection attorney may also suggest strategies like choosing a type of bank account that isn’t eligible for garnishment, pursuing annuities or exploring offshore planning. Ultimately, the best approach for you will depend on the type of assets you’re trying to protect.
Irrevocable Pure Grantor Trust
In addition to employing defensive strategies to ward off creditors, you may want to consider establishing something called an Irrevocable Pure Grantor Trust, also known as the iPug™ trust. In contrast to the traditional irrevocable trust, this trust offers a lot of flexibility and allows the grantor to maintain complete control over it.
Not only can grantors change the beneficiary without risking the loss of assets to creditors, but they are also never required to distribute income or principal to a beneficiary. They can act as the trust’s trustee and choose to distribute trust assets.
In addition to these advantages, the iPug™ trust can be structured in a way to provide eligibility for Medicaid to its owner and to avoid the tax ramifications of traditional irrevocable trusts. If you’re interested in pursuing this type of trust, an asset protection attorney can help you decide if it’s right for you.
Contact Medley Law Firm: Top Asset Protection Attorneys in Pensacola, Florida
If you’re serious about guarding your wealth and securing your financial future, you need to work with someone with a proven track record. For people in the Pensacola area, there’s no better choice than the Medley Law Firm. Our asset protection attorneys can help you secure the legacy you’ve worked so hard to build.
When you’re ready to get started, give us a call at (850) 607-7890 to schedule an appointment with a top-notch legal expert in your area.