Archive for the ‘ Asset Protection ’ Category
Adding Spouse to Financial Account Doesn’t Make It Tenancy by the Entirety (TBE)
A recent Florida bankruptcy case suggests that adding your spouse to an existing financial account does not result in a tenancy by the entirety (TBE) account. TBE accounts have special treatment when it comes to protection from creditors’ claims: they are not subject to claims against one spouse but not the other. A creditor with [...]
Olmstead Bill Signed Into Law
The Olmstead Bill, which I discussed here and here, was signed into law by Governor Scott on May 31, 2011. The bill substantially amended Florida Statutes Section 608.433, confirming, retroactively, that the charging order is the exclusive remedy for judgment creditors with respect to a debtor’s interest in a multiple-member Florida LLC and setting out [...]
10 Things About Personal Guaranties
1. This Time, It’s Personal. A personal guaranty is a promise to be personally responsible for the obligation of another person or company. The person or company to whom the obligation is owed—usually a lender—can enforce the obligation against the guarantor just like the original obligor. 2. Would You Loan Money to a Teenager? No, [...]
Florida Senate’s Olmstead Bill Analysis
As I blogged about previously (here), a bill addressing the Florida Supreme Court’s ruling in Olmstead v. Federal Trade Commission, 44 So. 3d 76 (Fla. 2010)–I’m calling it the Olmstead Bill– is winding its way through the Florida Legislature. The Florida Senate’s Bill Analysis and Fiscal Statement was released on Monday and can be viewed [...]
Legislative Answer to Olmstead Uncertainty is Coming
A bill addressing the uncertainty created by the Florida Supreme Court’s Olmstead decision is working its way through both houses of the Florida Legislature. The Olmstead decision (which I blogged about previously) held that judgment creditors can foreclose against and take ownership of the owner’s interest in a single-member Florida LLC. This result was disappointing [...]
What Should LLCs in Florida do in Light of the Florida Supreme Court’s Ruling in Olmstead v. FTC?
It’s important that business owners know about the Florida Supreme Court’s recent decision in Olmstead v. FTC and its impact on LLCs organized, operating, or owning property in Florida. The Olmstead decision eliminates part of the asset protection feature of all single-member LLCs and calls into question the asset protection afforded by multiple-member LLCs. “[This] [...]
Hidden Wealth Radio
Thanks to Chuck Oliver, founder of The Hidden Wealth System, for inviting us onto his radio program to discuss estate planning, asset protection, and business counseling. We both enjoy the opportunity to work with thoughtful and active counselors and advisors like Chuck. The report mentioned during the radio program–Asset Protection Planning in Florida–can be found [...]
Asset Protection Planning in Florida: Fraudulent Transfers
In order for any asset protection exemption or planning technique to be effective, it needs to be implemented before the event giving rise to a third party creditor’s claim has occurred. If a person waits until there is an actual specific threat of liability to a third party, then utilization of the foregoing exemptions or [...]
Asset Protection Planning in Florida: Common Techniques
The techniques described here are means of titling or transferring property to make it immune from creditors’ claims against the owner personally. Effective use of these techniques is at all time subject to the exceptions for fraudulent transfers and conversions. The following discussion is a summary only. If you would like more information about these [...]
Asset Protection Planning in Florida: Exempt Property
The exemptions discussed below are privileges or rights granted by law to a debtor to enable him or her to retain a portion of his or her property free from judicial seizure and sale to satisfy the claims of the debtor’s creditors. Effective use of these exemptions is at all time subject to the exceptions for [...]