How can i protect my savings from a lawsuit

Quote from Bob111:

just curious what are the options ror US resident?

Thank you!
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One effective strategy is to become a Florida resident and invest a large amount (no limit) in your home. In Florida, your homestead is completely protected from judgments and creditors.

Later, if you so desire, you can even sell the Florida home in order to buy another Florida home and still maintain protection if you do it properly (don't commingle funds, etc).

A Florida homestead is not protected from federal tax liens, Florida state tax liens, or parties to whom you have pledged the property as collateral (mortgagees).

Homestead protection is written into the Florida constitution itself (Article X, Section 4).

http://en.wikipedia.org/wiki/Homestead_exemption_in_Florida
 
I am attorney in CA and Fl.

Most people do not understand that most of the asset protection schemes are bullshit.

If someone is a creditor of a properly set up corp... then you can keep your personal assets shielded.

But if someone is your creditor and you get sued.... They are going to use the discovery process to get you to disclose all your holdings and interests. If you control it they are going to try and get control of the control. I have given this speech to some and they go.... well what if I lie. I do not want my ex wife to see. Which is when I can't really help them .


Some retirement programs may be protected.
But some of the most expensive lawyers tell you the best way to shield your money is to buy a house in FL and homestead it.

There that cost 500 bucks you got it free.

Most of the other schemes are the type of schemes which get busted up when tested by the IRS or other creditors.

If you have a great scheme I will look at it for fee. I have lots of upside down clients looking for schemes.
 
Quote from jem:

I am attorney in CA and Fl.

Most people do not understand that most of the asset protection schemes are bullshit.

If someone is a creditor of a properly set up corp... then you can keep your personal assets shielded.

But if someone is your creditor and you get sued.... They are going to use the discovery process to get you to disclose all your holdings and interests. If you control it they are going to try and get control of the control. I have given this speech to some and they go.... well what if I lie. I do not want my ex wife to see. Which is when I can't really help them .


Some retirement programs may be protected.
But some of the most expensive lawyers tell you the best way to shield your money is to buy a house in FL and homestead it.

There that cost 500 bucks you got it free.

Most of the other schemes are the type of schemes which get busted up when tested by the IRS or other creditors.

If you have a great scheme I will look at it for fee. I have lots of upside down clients looking for schemes.
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Quite right. If it is you by yourself. You are in control. You and your moneys will be found.
Or your scheme will have to be so elaborate that you will still be looking over your shoulder.
If your Trust has multiple parties and you are not in control ... then you must trust others ...

Thanks for the Florida Insight ... That is something I did not know.
 
Interesting about the Florida homestead loophole. The only question I have is, do you have to live there? That would be the dealbreaker. I hate Florida.
 
Quote from SomeYoungGuy:

Interesting about the Florida homestead loophole. The only question I have is, do you have to live there? That would be the dealbreaker. I hate Florida.
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Not a loophole per se. It's an explicit protection articulated in the state constitution. But yes, one must be a Florida resident to qualify for Florida homestead protection.

Obtain a Florida driver's license (turn in old one). Register/retitle all vehicles in Florida. Update all financial, tax, banking, and business records to be sent to your Florida home address. Then spend your 'vacation' time wherever you want.

A large portion of Florida is chock full of red necks (the bad kind, not the hard working good kind), etc. However, having a house on an island in the keys, with a fast boat/plane to Miami, zero state income tax, and extremely robust homestead protection, can't be all bad?
 
Quote from SomeYoungGuy:

But your ownership stake in the company can be liquidated and attached. No different from buying Amazon stock; if you have a judgement, they sell the stock and transfer the money to the plantiff.
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yes. company not going to protect you, if you have single member or multiple members, but you are the guy, who contribute the funds.

Thank you!
 
Quote from EllisWyatt:

One effective strategy is to become a Florida resident and invest a large amount (no limit) in your home. In Florida, your homestead is completely protected from judgments and creditors.

Later, if you so desire, you can even sell the Florida home in order to buy another Florida home and still maintain protection if you do it properly (don't commingle funds, etc).

A Florida homestead is not protected from federal tax liens, Florida state tax liens, or parties to whom you have pledged the property as collateral (mortgagees).

Homestead protection is written into the Florida constitution itself (Article X, Section 4).

http://en.wikipedia.org/wiki/Homestead_exemption_in_Florida
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make sense

Thank you!
 
Quote from EllisWyatt:

One effective strategy is to become a Florida resident and invest a large amount (no limit) in your home. In Florida, your homestead is completely protected from judgments and creditors.

Later, if you so desire, you can even sell the Florida home in order to buy another Florida home and still maintain protection if you do it properly (don't commingle funds, etc).

A Florida homestead is not protected from federal tax liens, Florida state tax liens, or parties to whom you have pledged the property as collateral (mortgagees).

Homestead protection is written into the Florida constitution itself (Article X, Section 4).

http://en.wikipedia.org/wiki/Homestead_exemption_in_Florida
More...

I remember the first time heard about the FL homestead loophole. It was about 15 or 20 years ago and I was asking someone why so many OTCBB companies were in Florida. (this was back when there were tons of scams in OTCBB stocks) I was told they are there because of the FL homestead. They take in millions of dollars from stock sales and put it into their houses, then when they get sued, they still have millions of dollars left because its all in their home. Look at Boca Raton...200k people use boca raton as there address, but the census says only about 75k people live there. Boca Raton is the where the sucessful criminals that never got caught retire.
 
Quote from hoodooman:

Buy a million dollar umbrella insurance policy. Not expensive. I have one.
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Agree, but --go for five million. Not that much more money. The peace of mind is worth it.
 
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