Archive for the ‘ Florida Law ’ Category
Converting a Delaware LLC to a Florida LLC
It is possible to convert a limited liability company (LLC) formed in Delaware into a Florida LLC. The effect of conversion is to change the LLC’s home state, the laws of which govern the organization of the LLC and the relationship among LLC members. Conversion to a Florida LLC should not impact the federal income [...]
How Good is Your Contract’s Attorneys’ Fee Provision?
A big deterrent to business owners’ enforcing their contractual rights is the potential cost of litigation. Including an attorneys’ fees provision in your contacts can help. Typically, an attorneys’ fee provision will state that, in the event of litigation related to the contract, the prevailing party should be awarded his or her attorneys’ fees and [...]
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 [...]
Florida Elective Share and Trusts
Florida elective share laws are notoriously thorny. The principle is simple: The spouse of deceased Florida resident is guaranteed an inheritance of 30% of the value of the estate–the elective share. What makes this so difficult is determining what should be included in the value of the estate (called the elective estate) and what should [...]
New Florida Durable Power of Attorney Law
Florida’s durable power of attorney law has been updated, effective October 1, 2011. For most people, the new durable power of attorney law will have no effect on their existing Durable Powers of Attorney, which will continue to be effective after October 1, 2011. However, people with so-called “springing” powers of attorney—powers of attorney that [...]
10 Things About Florida Durable Powers of Attorney
What is It? A Durable Power of Attorney (DPOA) is a legal instrument that grants an agent (sometimes called the “attorney-in-fact”) authority to act in the place of the principal. A DPOA is different than other types of powers of attorney because it is effective even if the principal later becomes incompetent. Who can be [...]
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 [...]
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] [...]