Asset Protection Attorney

Q: Does asset protection planning have tax implications?

Yes. Irrevocable trust structures can have estate tax, gift tax, and income tax implications. Entity restructuring can trigger transfer taxes, particularly Florida property tax reassessment if real estate is involved. Coordination with tax counsel matters on structures with significant tax implications.

Quick Answers on Florida Asset Protection

Florida is one of the most debtor-friendly states in the country. Homestead, tenancy by the entireties, wage protection, and retirement account exemptions are stronger here than almost anywhere.
Florida homestead is unlimited by value. No dollar cap, only an acreage limit (½ acre municipal, 160 acres rural). This alone draws significant wealth to Florida.
Tenancy by the entireties protects married couples' jointly-held property from individual-spouse creditors. Recognized for real estate, bank accounts, and investment accounts.
Asset protection only works if done BEFORE a claim arises. Transferring assets after being threatened with a lawsuit is fraudulent conveyance under Florida Statute 726. Courts can unwind these transfers years later.
Professional liability (doctors, dentists, lawyers) requires structures beyond a simple LLC because professional malpractice exposes personal assets directly.
Retirement accounts (IRA, 401(k), qualified annuities) receive strong creditor protection under Florida law.
LLCs and trusts work together, not as alternatives. The right structure depends on what you're protecting and from whom.

Build Your Asset Protection Plan

Free 30-minute consultation. We structure homestead, entity, and trust protections during quiet periods, before claims arise.

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Why Florida is one of the most debtor-friendly states

Five overlapping protections make Florida one of the strongest asset protection jurisdictions in the United States. The right structure usually combines multiple protections rather than relying on a single one.

Homestead. Florida's constitutional homestead shields your primary residence from most creditors with no dollar cap, subject only to acreage restrictions (half an acre inside municipal boundaries, 160 acres outside). Unlike most states which cap homestead at a fixed dollar amount, Florida's protection is unlimited by value. This alone makes Florida residency attractive for high-net-worth individuals facing potential liability.

Tenancy by the entireties. Property owned jointly by a married couple is protected from creditors of either individual spouse. Florida recognizes tenancy by the entireties not only for real estate (most states' approach) but also for bank accounts, brokerage accounts, and other personal property. This is one of the broadest applications of tenancy by the entireties in the country.

Head of household wage protection. Wages of a "head of household" (defined under Florida Statute 222.11) are exempt from garnishment, even for judgment creditors. This is one of the strongest wage protections in any state.

Retirement account protection. IRAs, 401(k)s, 403(b)s, qualified annuities, and certain other retirement vehicles receive strong creditor protection under Florida law. Both inherited and self-funded retirement accounts have substantial protection.

Entity and trust structuring. Florida LLCs (especially multi-member LLCs) offer charging order protection limiting creditor remedies. Florida trusts, used correctly, can hold business interests, real estate, and personal assets in structures that resist creditor attachment.

Trust vs. LLC vs. combined structures

Trusts and LLCs serve different purposes in asset protection. Most plans use both, often integrated.

Structure	What it does well	Limitations
Revocable Living Trust	Avoids probate, maintains privacy, simplifies estate administration	Does NOT provide creditor protection for the grantor (assets are still owned by grantor)
Irrevocable Trust	Removes assets from grantor's estate; can provide creditor protection	Loss of control; tax implications; complex structuring
Single-member LLC	Separates business liability from personal assets	Limited charging order protection in some jurisdictions
Multi-member LLC	Strong charging order protection; flexibility for family asset holding	Requires real second member with genuine economic interest
Series LLC	Multiple protected "series" under one umbrella; useful for multiple rental properties	Florida recognizes; tax treatment still developing in some jurisdictions
LLC owned by Trust	Combines entity asset protection with trust privacy and estate planning	More complex; requires careful drafting to avoid undermining either protection

Our breakdown of when to use which structure is in trusts vs LLCs in Florida: choosing the right legal vehicle and the deeper guide on using Florida LLCs and trusts to protect business and personal assets.

Florida asset protection service areas

Area	Geographic coverage
Palm Beach County	West Palm Beach, Boca Raton, Delray Beach, Wellington, Jupiter, Boynton Beach, Palm Beach Gardens, and surrounding municipalities
Broward County	Fort Lauderdale, Hollywood, Pompano Beach, Coral Springs, Plantation, Davie, and surrounding municipalities
Out-of-state clients establishing Florida residency	Coordinated planning for clients relocating from high-tax, high-liability states to capture Florida's protections

Considering asset protection planning?

Free initial consultation. The earlier in the process, the more options are available. Call (561) 672-1161 or submit through the contact form.

Asset protection for professionals and business owners

Doctors, dentists, attorneys, accountants, and business owners face higher liability exposure than most clients. Standard estate planning isn't enough.

Doctors and dentists. Malpractice exposure can exceed insurance limits. Professional practice income, real estate holdings, and personal assets all need walling off. We coordinate with malpractice insurance counsel to identify gaps and structure accordingly. Our guide for Florida doctors, dentists, and professionals on asset protection covers the framework.

Business owners. Liability from business operations, partnership disputes, contract claims, and product liability all need entity isolation. Multi-LLC structures, holding companies, and family trusts work together. Our piece on using Florida LLCs and trusts to protect business and personal assets goes into depth.

Real estate investors. Each rental property creates liability exposure. Most investors hold properties in single-purpose LLCs to contain risk, and combine with personal asset structures. We coordinate with our real estate practice on entity formation timed with acquisitions to avoid the Florida property tax reassessment trap.

Inherited wealth. Inherited assets receive different protection than assets earned during marriage. We structure inheritance receipts to maintain that distinction, particularly important for clients in or considering divorce. Our guide on protecting inherited property in Florida from divorce or lawsuits covers the structures.

The biggest asset protection mistakes Floridians make

Waiting too long. Asset protection done before any claim arises is effective and durable. Asset protection done after a claim is threatened (or worse, after suit has been filed) is fraudulent conveyance, and courts can unwind it years later.

Putting everything in joint tenancy with right of survivorship instead of tenancy by the entireties. Joint tenancy with right of survivorship doesn't provide the same creditor protection. The deed and account titling have to be specifically tenancy by the entireties.

Treating a revocable living trust as asset protection. A revocable living trust is excellent for probate avoidance and privacy but provides zero creditor protection for the grantor. Assets in a revocable trust are still owned by the grantor for creditor purposes.

Single-member LLCs without genuine economic separation. Florida law has eroded the protection of single-member LLCs in some respects. Multi-member structures with real economic interests provide stronger charging order protection.

Not coordinating asset protection with estate planning. The two practice areas need to work together. Estate plans that don't account for liability exposure leave gaps. Asset protection that ignores death and incapacity creates problems for heirs.

What most people miss

The fundamental rule of asset protection: it only works if done before a claim arises. Transferring assets to avoid a known or threatened creditor is fraudulent conveyance under Florida Statute 726. Courts can unwind the transfer years after the fact, meaning the protection you thought you had vanishes precisely when you need it most.

The implication is that by the time you've been served with a lawsuit, sent a demand letter, or even verbally threatened with legal action, most of your asset protection options are gone. Plans built during quiet periods (before any claim is on the horizon) hold up to scrutiny. Plans built reactively often don't. The right time to do asset protection planning is when you don't think you need it. Our deep dive: how to legally transfer assets without triggering fraudulent conveyance.

Florida residency and asset protection

Establishing Florida residency unlocks Florida's asset protection regime. For high-net-worth individuals or professionals with significant liability exposure, this is often the single largest move available.

Florida residency requires more than buying a Florida house. Establishing domicile means filing a Florida Declaration of Domicile, getting a Florida driver's license, registering to vote in Florida, registering vehicles in Florida, moving primary banking to Florida-based institutions, and spending more than half the year in Florida.

For relocators from states with aggressive residency audit programs (New York, New Jersey, California, Massachusetts, Illinois), documentation matters. Our companion estate planning practice handles the residency planning side, and our piece on estate planning for Florida snowbirds covers the framework.

Why work with Kelley, Grant & Tanis, P.A.

Brett Halperin leads the firm's asset protection, estate planning, probate, trust administration, and elder law practice. Brett earned his JD from the University of Florida Levin College of Law and his Bachelor's in Economics from the University of Florida, where he was a member of Florida Blue Key. He volunteers with the Mission United Veterans Pro-Bono Legal Project and the Jewish Federation of South Palm Beach County. He's a member in good standing of the Florida Bar. Full attorney bios on our attorneys page.

The firm has two offices in South Florida:

West Palm Beach Office: 1645 Palm Beach Lakes Blvd, Suite #1200-3, West Palm Beach, FL 33401
Boca Raton Office: 370 Camino Gardens Blvd., Suite #301, Boca Raton, FL 33432

Asset protection integrates with the firm's estate planning, probate, real estate, and title insurance practices. Properly designed plans cross all four areas.

Frequently Asked Questions

What is Florida's unlimited homestead protection?

Florida's constitutional homestead protection shields a primary residence from most creditors with no dollar limit. The only restriction is acreage: half an acre inside a municipal boundary, 160 acres outside. This contrasts with most states, which cap homestead at a fixed dollar amount (often $25,000 to $500,000). Florida's unlimited protection by value is why high-net-worth individuals often establish Florida residency before potential liability arises.

Can asset protection be done after I'm sued?

No. Transferring assets to avoid a known or threatened creditor is fraudulent conveyance under Florida Statute 726. Courts can unwind these transfers years later. Asset protection only works if structured before any claim is on the horizon. By the time a demand letter arrives, most options are gone.

What's the difference between a revocable trust and an irrevocable trust for asset protection?

A revocable living trust provides ZERO creditor protection for the grantor. Assets in a revocable trust are still owned by the grantor for creditor purposes. Revocable trusts are useful for probate avoidance and privacy, not asset protection. An irrevocable trust, properly structured, can provide asset protection because the grantor has truly given up ownership and control. The tradeoff is that giving up control is real and significant.

Do single-member LLCs protect assets in Florida?

Limited protection. Florida case law has narrowed the charging order protection available to single-member LLCs in certain creditor scenarios. Multi-member LLCs, with genuine economic interests held by multiple members, provide stronger protection. The "second member" needs to be real, with actual economic stake, not a paper formality.

Can a creditor reach my retirement accounts in Florida?

Generally no. IRAs, 401(k)s, 403(b)s, qualified annuities, and most other retirement vehicles receive strong creditor protection under Florida law. Both self-funded and inherited retirement accounts have substantial protection. The protection extends through bankruptcy as well, with some federal limits applying to certain account types.

What is tenancy by the entireties and how does it protect married couples?

Tenancy by the entireties is a form of joint ownership available only to married couples. Property held this way is protected from creditors of either individual spouse, only joint creditors can reach it. Florida recognizes tenancy by the entireties not only for real estate but also for bank accounts, brokerage accounts, and other personal property, which is broader than most states.

How do doctors and dentists structure asset protection in Florida?

Professional liability exposes personal assets directly, so the LLC alone isn't enough. Typical structures combine: malpractice insurance with appropriate limits, professional practice entity, separate real estate holdings entities, irrevocable trust structures, retirement account funding, and Florida homestead. Our guide for Florida doctors, dentists, and professionals on asset protection covers the framework.

Does asset protection planning have tax implications?

Yes, and this is where coordination with tax counsel matters. Irrevocable trust structures can have estate tax, gift tax, and income tax implications. Entity restructuring can trigger transfer taxes, particularly Florida property tax reassessment if real estate is involved. We coordinate with tax counsel on structures with significant tax implications to ensure the protection benefit isn't outweighed by tax costs.

Build Your Asset Protection Plan

The earlier in the process, the more options are available. Free 30-minute consultation. We coordinate asset protection with estate planning, real estate, and entity formation in a single integrated plan.

Call (561) 672-1161 Request a Callback