Wealth Preservation & Asset Protection
Protecting one’s assets from predatory creditors is an essential component of an integrated estate and wealth preservation plan. In addition to the Florida statutory protections afforded certain of your assets (i.e., homestead, IRAs, life insurance, and annuities), common asset protection structures include the use of limited partnerships, limited liability companies, charitable remainder trusts, irrevocable life insurance trusts, and domestic and/or offshore asset protection trusts. Each of the aforementioned asset protection structures provide varying levels of protection depending upon (i) the quality of the documents drafted, (ii) the state or country where such entity is domiciled and (iii) your level of risk tolerance (i.e., the level of assets you are willing to transfer/fund to such entity and the amount of control you are willing to relinquish over those assets). In addition, revisions to state statutes and ever changing case law often present a moving target when it comes to the optimal domicile for asset protection vehicles. Ultimately, the goal of wealth preservation planning is to create “shields” around certain of your assets to thwart judgment creditors and reduce the risk of suit.