When it comes to asset preservation, Florida is a unique state. The Sunshine State has its own set of rules and regulations that must be followed in order to protect your assets. Here’s what you need to know about asset preservation in Florida.
Florida is a great state for asset protection.
The first thing to consider when trying to protect your assets is what type of asset protection trust you would like to create.
There are three main types of asset protection trusts: domestic asset protection trusts, offshore asset protection trusts, and hybrid asset protection trusts.
Domestic Asset Protection Trusts
A domestic asset protection trust is created under the laws of a particular state, usually the state in which the grantor resides. The trust is designed to shield assets from creditors.
Offshore Asset Protection Trusts
An offshore asset protection trust is created under the laws of a foreign country. The trust is designed to shield assets from creditors and can be used in conjunction with a domestic trust.
Hybrid Asset Protection Trusts
A hybrid asset protection trust is created with both domestic and offshore elements. The hybrid trust provides the greatest level of asset protection but can be more expensive to set up and maintain than a domestic or offshore trust.
No matter what type of trust you choose, there are certain requirements that must be met in order for the trust to be effective. The trustee must be independent from the grantor, and the trustee must have discretion over the distributions from the trust. The terms of the trust must be clearly laid out in a written document, and the trustee must follow the terms of the trust consistently.
Asset preservation trusts can be an effective way to protect your assets from creditors, but they must be set up correctly in order to work properly. If you have any questions about setting up an asset protection trust, please contact our office. We would be more than happy to help you navigate this process.
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