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Having low amounts of insurance will make your assets a target in the event that the insurance does not have enough funds to cover the claim.
Life insurance and Annuities are also typically used for asset protection purposes.
Florida Statutes Section 222.14 states that the cash surrender value of life insurance policies and the proceeds of Annuity contracts issued to residents of Florida, shall not in any case be liable to attachment, garnishment, or legal process in favor of any creditor unless the policy or annuity contract was effected for the benefit of such creditor.
In Florida your primary residence is considered to be your Homestead as long as you have the intent to remain there indefinitely. The Florida Constitution allows an exemption against forced sale for your Homestead.
Although Florida Homestead Law provides an acreage limitation, it does not provide a value limitation. A creditor of yours cannot force sale your property, his or her only remedy is to put a lien on the property unless the creditor obtained a valid homestead waiver or is listed as one of the three exceptions.
The exeptions to Florida Homestead protection against forced sale include: 1) property taxes, state tax, or IRS tax liens; 2) Mechanic Liens; and 3) Mortgages.
In Florida when married couples own an asset together is presumed to be as Tenants by the Entirety.
The effect of the exemption is to grant each spouse an undivided right to the whole asset. Thus, the creditor of only one spouse cannot reach assets owned 100% by the other spouse and, as such, the debt of one spouse in most circumstances will not allow a creditor to pierce the tenants by the entireties ownership as to the interest of the remaining spouse, leaving the entire asset unreachable by the creditor.
This means that in order for a creditor to reach an asset owned as tenants by the entirities, the creditor must have a legally enforceable debt against both spouses in order to attack such asset. This is why when one spouse requests a loan, the financial institution makes the other spouse also sign all the loan documents.
Call our office today to schedule a consultation and an asset protection health check where we review your exposure against potential creditors.
Proper asset protection planning can insure that your assets are protected in the event of a lawsuit or an unexpected turn of events. Call us today at (305) 489-1415 or fill the contact form located in this page.