The Library

The Florida Asset Protection Trust

The Florida Asset Protection Trust (“FLAPT”)is an irrevocable trust that is sitused (at least initially), in the state of Florida but which is highly flexible to meet the your changing needs. The FLAPT not only provides excellent asset protection, but the protection may even be better than Delaware or Nevada type Trusts. To learn more click here.

Protect Your Income From Creditors.

Protecting your assets is obviously important, but it is also critical to protect your future income. To learn how, click here.

Why The “P.A.” Is The Worst Legal Entity To House Your Medical Practice

P.A.s (professional associations) and P.L.s (professional limited liability companies) are the single worst form of legal entity to house your medical practice; and perversely, this is business entity that most physicians have been told to use by their advisers. This article discusses the problems posed by P.A.s, why so many physicians have them, and what Florida physicians can do to protect the source of your livelihood in these uncertain economic times., click here.

Protect Your Children.

Our children are our most valued asset. To learn how to do customized, intelligent planning to ensure the have the best chance of happiness and success, even if you are not around to guide them yourself, click here.

The FLORIDA Asset Protection Trust; Less Expensive, More Protective, No Out of State Trustee Required

Over my almost twenty years as an asset protection and estate planning attorney, I have found that sometimes going back to basics can provide clients with the best results. Using planning techniques where the statutes have been tested and the case law supporting them is rich provides more certainty than planning based on newer, less tested laws. The Florida Asset Protection Trust (“FLAPT”)is an irrevocable trust that is sitused (at least initially), in the state of Florida but which is highly flexible to meet the needs of the trusts’s creator (called the Settlor) over time. The Settlor or the Settlor’s family members and/or trusted friends can serve as the trustee so no expensive out of state corporate trustee is needed. Oddly, the Settlor is not even beneficiary of the FLAPT but can still receive asset back from the it in the future. This not only provides excellent asset protection, but the protection may even be better than Delaware or Nevada type Trusts. click here.

The Flexible Irrevocable Trust
Far More Powerful Than You May Have Imagined

"Irrevocable” trusts are one of the most powerful tools in your estate planning and asset protection arsenal but many (if not most) people are reluctant to use them due to their "irrevocable" nature. Irrevocable Trusts are widely misunderstood, even by many attorneys, accountants, bankers, and other professionals. In this article I explain what irrevocable trusts are, how trusts protect assets, how they are actually highly flexible and changeable over time, and why you should consider using them as a key part of your planning. To learn more, read the full article by clicking below. click here.

Why The “P.A.” Is The Worst
Legal Entity To House Your Medical Practice

P.A.s (professional associations) and P.L.s (professional limited liability companies) are the single worst form of legal entity to house your medical practice; and perversely, this is business entity that most physicians have been told to use by their advisers. They provide little to no asset protection, make protecting corporate distributions impossible, and can even prevent a sole practitioner from being able to protect their future wages. With the crash of the Florida real estate market, our depressed economy, and the seemingly never ending cuts of physician reimbursements, protecting the source of your income is more important than ever. Unfortunately, huge numbers of physicians have had P.A.s formed for them by their attorneys and accountants simply out of habit, and not because it best meets their needs. Fortunately, recent laws now make it possible for a physician to convert their P.A. to an entity that provides significant advantages without (i) requiring them to get a new tax ID, or (ii) suffering a break in their cash flow from medicare or insurance companies. This article discusses the problems posed by P.A.s, why so many physicians have them, and what Florida physicians can do to protect the source of your livelihood in these uncertain economic times. click here.

How to Create and Maintain
a Florida "Wage Account"
(A More Brass Tacks Approach)

Florida is one of the only states that allow a person to protect 100% of their income from garnishment (i.e., protect it from the reach of creditors). But, like most other things in life, there are exceptions to this general rule (some big exceptions) and devil is always in the details. The benefits to having your wages exempt from attachment or garnishment are significant, especially if your income is significant. Below is an article that provides you with instructions on how to actively set in motion the tools and practices necessary to protect your income by use of a “wage account.” But please bear in mind that not everyone who earns income in Florida can use a wage account to protect their earnings. I have, therefore, also written another memo entitled “The Florida Wage Exemption; An Overview” designed to give you a general overview of Florida's wage protection laws, how they work, and who can benefit from them. My hope is that it will give you a foundation of knowledge before you start trying to actively protect your income in the real world. click here.

Potential Problems When Transferring Real Estate Owned by an Individual to a Legal Entity

Holding real estate in a legal entity like an LLC has real benefits, but transferring property you already own in your individual name comes with traps. This article walks through five of them: Florida's Documentary Stamp Tax (including the Crescent Miami case and the "conduit entity" rules that decide when the tax applies), the risk of invalidating your title insurance, higher property and casualty insurance costs, mortgage problems including the "Due on Sale" clause and Fannie Mae restrictions, and the loss of the 10% assessment cap on non-homestead property. To learn more, click here.

How To Title Accounts as Tenants By The Entireties

A Tenants by the Entireties account is a joint account owned solely by a married couple, and when it is set up correctly it can protect the account from the creditors of one spouse. Setting it up correctly is where people get burned: checking the wrong box on the bank's signature card, using a financial institution governed by another state's law, or adding a spouse to an account that started as a single account can each destroy the protection. This memorandum explains the traps and the practical steps — including how to verify your existing accounts — to make sure yours actually qualify. To learn more, click here.