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Florida Asset Protection

Asset Protection for Assets other then Real Estate

Asset Protection for Assets other than Real Estate

Life Insurance and Annuities

Florida statutes protects cash value in insurance policies and all annuities from creditors’ claims.  The protection for Life Insurance is only for the beneficiary while they are alive and death benefits are not protected from creditors of the policy.

Annuities are one of the most popular methods of protection and Florida courts have upheld the protection of annuities with liberal interpretation. Private annuities between family members are entitled to the exemption, as are the proceeds of personal injury settlements structured as an annuity. Additional protection is available by purchasing international annuities or in some offshore jurisdictions.  

Withdrawals of cash from cash value insurance and annuities are protected if the owner of the policies remains a Florida resident.  Florida courts have held that funds withdrawn from cash value insurance polices and annuity payments received by a debtor remain protected as long as the funds can be accurately traced to a bank account readily accessible to the debtor as a Florida resident.

Disability Income

All disbursements of money for cash for disability income are exempt from creditors in Florida law.

Salary

Under Section 222.11 all earnings and compensation (unlimited) for the head of the household (more than 50% of household earnings) are exempt from garnishment from creditors for labor or services (including wages).

There must be a clear delineation of accounts and the wage account cannot be comingled with any other accounts.  For this reason, many people in Florida have separate account for wages. The funds are only protected for a period of 6 months from the date of deposit.

Pension Plans, IRAs and Profit Sharing Plans

These plans are specifically known for their ability to defer and mitigate taxation.

Pension Plans, IRAs and Profit Sharing Plans are exempt from creditors under Florida Statute 222.21(2)(a), which provides that any money or other assets payable to participant or beneficiary in a qualified retirement or profit sharing plan is exempt from all claims from creditors of the beneficiary or participant.  Florida law specifically  includes the protection of plans designated for teachers, county officials, employees of the state and communities.

Automobile Exemption

Up to $1,000 may be protected in an automobile under Florida law.

College Plans such as Prepaid and 529

Florida prepaid college tuition plans and Florida's 529 college saving plan are protected from creditors by Florida Statute 222.22.  The plan must be based in Florida to qualify.

Other Exemptions

Other exemptions include Florida Statutes include professionally prescribed health aids (like wheelchairs, insulin pumps and hearing aides), qualified prepaid college tuition, hurricane savings accounts, medical accounts and disbursements from trusts for disabled persons who are residents.