By Phil Rarick, Weston Trust Attorney, and Jasmine Benitez, Legal Assistant

Many real estate investors wrongly believe that a Florida Land Trust can offer asset protection. While this type of trust is known for providing privacy and simplifying estate planning, they do not provide comprehensive protection from creditors or legal claims. A better option is often a multi-member Florida limited liability company with a strong operating agreement that takes advantage of Florida’s anti-Olmstead law.

What Is a Florida Land Trust?

A Florida Land Trust is a legal structure where a trustee holds the title to a piece of property, but the beneficiary (property owner) maintains control. The beneficiary has all rights to use, manage, and profit from the property, while the trustee’s role is to handle administrative tasks. One of the most notable benefits of a Land Trust is that the beneficiary’s identity remains private, as the trustee’s name appears on public records instead.

Note: This means that if you wish to protect your privacy, then you cannot be the Trustee; you need to find a third party whom you trust to serve as Trustee.

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Can a Florida Land Trust Protect Your Assets?

While a Land Trust offers privacy, it is important to clarify that it does not provide true asset protection in the way that many people assume.

1. Limited Protection Against Creditors

A Florida Land Trust does not protect property from creditors or legal judgments because it is typically a self-settled Trust. If you face a lawsuit or have outstanding debts, creditors can still pursue the property held in the trust. Even with a Florida Land Trust, a creditor who obtains a judgment against you can still gain access to the property. The trust does not block creditors from identifying the beneficiary or forcing the sale of the property.

2. Lack of Lawsuit Protection

While the Land Trust keeps your name off public records, it does not prevent lawsuits or other legal actions from impacting on the property. If you are sued personally, your real estate holdings may still be at risk, as the trust doesn’t offer the same protection as forming an LLC or other business entities that legally separate assets.

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How Can a Florida Land Trust Be Used in Your Estate Plan?

While this trust itself does not fully protect assets, it can still be part of a broader asset protection strategy.

• Simplified Estate Planning: A Land Trust facilitates the easy transfer of property to heirs without probate. However, this advantage does not extend to asset protection against creditors.
• Combined with an LLC: For stronger asset protection, pairing a Florida Land Trust with a Limited Liability Company (LLC) can help separate your personal assets from your real estate holdings. An LLC offers protection from creditors by shielding your assets from liability tied to the property.

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Conclusion

Get it right the first time. To explore your best legal options to protect your real estate investments, contact an experienced Weston estate planning attorney who also concentrates on asset protection.

For more information, contact Phil Rarick, Weston Trust Attorney, at info@raricklaw.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on the information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an attorney who is experienced in Florida trust law. Your receipt of information from this website, blog, or Miami trust attorney does not create an attorney-client relationship and the legal privileges inherent therein.

Its a New Year and time to file your 2026 Annual Report if you own a Florida LLC (limited liability company), corporation, or partnership. The deadline is May 1, 2026. The state will charge you a $400 late fee if you miss this deadline.

The official Florida web site is www.sunbiz.org. This site has “Consumer Notices” to alert you to bogus web sites that try to scam persons who file these reports.

How To Safely File

The legitimate email notice will state that it is from the Florida Department of State; Subject: Official 2025 Annual Report Notice for: [Name of your corporate entity].

This notice will give you instructions on how to file on line at www.sunbiz.org where you will find a banner that states, “’Florida Department of State, Division of Corporations”.

Florida Department of State fees for the annual registration of corporate entities are:

• Limited liability company: $138.75
• Corporation: $150.00
• Limited Partnership: $500

Watch For These 3 Scams Scam #1: F.C.F.S. – Florida Corporate Filing Services. This outfit sends you a notice in the mail that looks like they are official certificates from the State of Florida with a Tallahassee address and will request about $47 for a Certificate of Status. In another scam they may request $125 for filing corporate minutes. People are tricked into thinking such documents are required by the State – they are not. Scam #2: Corporate Filing Services Center. This group requests about $68 for a certificate of status – again, not required by the State. Scam #3: C.F.S – Certificate Filing Service. This gang has exceptionally impressive and official looking paper that resembles the quality paper of a birth certificate. They will request about $49 for a certificate of status. This is NOT required by the State. Note: The Department of Agriculture and Consumer Services (DACS) now has the statutory duty and responsibility to investigate potential scams and fine violators under the new “Government Impostor and Deceptive Advertisement Act” (GIDAA). For more information, see section 817.417, F.S. or visit the FDACS’s Division of Consumer Services. Good Time To Review Your Corporate Records – and Update Them

This is a good time to conduct an annual review of your LLC, corporation or limited partnership.

We have prepared a 10 Point Checklist to assist you. To get this list click here: 10 Point Checklist For Florida Corporate Entities

It may be advisable to make an appointment with our office to ensure your corporate minutes are properly prepared, are up to date, and accurately reflect key issues, such as who are the controlling officers, who are the owners, and what shares or units does each owner hold.

To schedule an appointment, call our office at (305) 709-2858 or email info@raricklaw.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Here is the good news/bad news I received from my bank today regarding my Paycheck Protection Program (PPP) Application: The good news: your application has been approved; the bad: the SBA is out of money and you must wait for Congress to refund the program!

Although I have heard of a few small businesses that have received funding I am guessing that most persons reading this letter have encountered similar frustrations. Note: if you have received funding, please so reply.

We predicted in my first letter regarding PPP that the $349 billion fund would run out of money and this Thursday it did. It lasted two weeks! For an interesting map on where the funds were distributed nationwide see PPP Loan Allocation Map.

My message to you now is don’t give up. Yes, many small businesses with average monthly payroll over $1 million got preferential treatment by the big banks. However, the banks are incentivized under the SBA program to make small loans under $1 million.

And more encouraging: there is strong bi-partisan pressure to refund the program. (If only Congress could stop the bickering and see the urgency of the threats to millions of small businesses.) Regardless, if you have applied and are waiting to get approval, keep checking with your bank to make sure they have all necessary documentation and try to get confirmation your application has been approved. If you have not applied, do so immediately.

My son-in-law is a senior manager for a major regional bank in the western states and is working over-time this weekend to continue to process applications. My bank advisor also tells me she is working this weekend on her bank’s back-log of applications. Both banks believe the program will be refunded. I think that is a good bet.

The Covid-19 Pandemic has changed the world as we know it and presented daunting challenges we have not encountered in our life time. It requires a total review of your estate plan and business entities to assure you are taking full advantage of Florida laws designed to protect your family and business.

The hard new reality: What plan was best for you prior to 2020 may not be what is best for you today

Take this three minute survey for a quick assessment:

If single: Special 2020 Asset Protection Checklist for Single Professionals

If married: Special 2020 Asset Protection Checklist for Married Professionals Note to All: Two important legal documents for everyone over age 18:

• An up-to-date Florida specific Durable Power of Attorney
• A comprehensive Florida Health Care Surrogate

Special note to all parents with college students and young adults:

We now know that COVID-19 can attack any age. The last people who consider a DPA and Health Care Surrogate mentioned above are young adults. If you are a parent with adult children over age 18, I urge you to convince your sons or daughters to secure these important legal instruments. For a flat fee, we are available to prepare these documents, review the key legal provisions with your adult children, and email them for signing.

We will get through this together, as we did after Pearl Harbor and 9/11, and will be a stronger, more united country. Stay well and stay safe!

You can always count on the Americans to do the right thing – after they’ve tried everything else. – Winston Churchill.

Millions of small business owners and self-employed have filed for loans under the Paycheck Protection Program because part or all of the loan can be forgiven if you retain your employees and maintain their salary levels.

Okay, we know, as of this writing, millions have applied and few have received!

But assuming SBA gets through this current bottle-neck and the funding starts to flow, then your focus will be on maxing out the amount that can be forgiven.

The SBA will forgive the part of your loan that covers the first eight weeks of payroll, mortgage interest, rent, and utility payments immediately after you receive funding. You must use 75% of the borrowed loan for payroll costs; only 25% can be for mortgage interest, rent, and utilities.

The SBA will not forgive the portion of the loan used for other expenses; this part of the loan will be maintained at a 2 year loan at 1% interest rate. Loan payments are deferred for the first 6 months of the loan although interest will accrue during this time.

So even if part of your loan is not forgiven, the loan terms are exceptionally favorable for you – maybe this explains why many banks have been lying low in the grass and not soliciting applications because they simply do not want to take on a boat-load of low interest rate loans or short term loans that are quickly forgiven.

So here are 5 quick tips for maxing out your loan forgiveness:

1. If possible, do not reduce the number of full time employees during the 8 week period. The SBA will do a Head Count Analysis for this period and reduce the forgivable portion of your loan according to a head count formula.

Note #1: The CARES Act allows the business to remedy the forgiveness amount by June 30, 2020, but it is still unclear how mechanically you do this. Expect further SBA guidance on this point.

2. If possible, do not reduce employee salaries during the 8 week period. The SBA will do a Wage Analysis and reduce the forgivable portion according to their wage analysis formula for any such reduction. But see Note #1 above.
3. Keep the loan funds in a separate bank account and only withdraw to cover eligible expenses.
4. Keep a separate expense account to accumulate all eligible costs.
5. Document all eligible costs.

For a deep dive into the tax benefits for small business under the CARES act I highly recommend for other attorneys and professional advisors the recent webinar by estate tax lawyer, super-guru and friend Alan Gassman: Update On The Paycheck Protection Act Loan Rules.

Here is an updated calculator from Turbotax: Stimulus Check Calculator When Will Checks Arrive?

If you signed up for direct deposit on either your 2018 or 2019 tax return, the IRS reportedly will start issuing electronic deposits on April 9 and they should show up in your bank account by April 14. However, remember, this program is fluid and these target dates are subject to change.

If you receive Social Security Benefits and usually don’t file a tax return, the IRS will use the information from your Social Security benefits statement to calculate the stimulus check amount. They will send the check electronically if that is how you typically receive your Social Security payments.

Note: For persons who don’t file a tax return, the IRS plans to create an on-line portal where you can file a “simple return” to provide your bank account information. This portal should go live within the next few weeks.

If the IRS has to send you a paper check, priority will be given to lower income persons; higher income persons will wait longer to get their checks.

Quick Tip: If you want to try to get your check sooner, then file your 2019 tax return as soon as possible and sign up for direct deposit.

In these challenging times, we are here to help you, your family and small business successfully navigate this massive but temporary storm. We will get through this together! Look for our future alerts.

It is a simple reality: We live in a hostile legal environment, and the chance you will not face costly litigation at some point in your career is not good. The good news is that you can fight back. Here is a quick summary of our “Porcupine” Asset Protection Strategy with tested legal strategies that can help protect your investments and property.

1. Make Your Assets As Unattractive as Possible to Attack with a Good Asset Protection Strategy

The starting point for most persons interested in helping to ensure that their hard earned investments are well protected is to make an inventory of all assets and, in consultation with an experienced asset protection attorney, divide these assets into “Protected Assets” and “Exposed Assets.” The goal is to take the Exposed Assets and turn them into porcupines, so if the wolf (creditors or future persons who may try to sue you) appears at your doorstep, their reaction will be the reaction porcupines get from their predators: after sniffing around they back off.

Therefore, the key point of the Porcupine Asset Protection Strategy is to turn attractive assets or “low-hanging fruit” into Porcupines with the initial goal to preempt lawsuits.

Note: What is the lowest of the low hanging fruit? Answer: Real estate titled in your name or joint name with your spouse.

Real estate is the ideal asset for creditors, because (1) it does not disappear overnight; (2) creditors can quickly lien it; and (3) creditors can foreclose on it. This is why almost all investment property should be in a multi-member Limited Liability Company (“LLC”) with a post 2012 Operating Agreement or Limited Partnership. See 4 Take-Aways Under Florida’s New LLC Law.

2. Asset Protection Planning is Not Dogmatic

Good asset protection strategy is not dogmatic; by this I mean that it does not apply a one size fits all approach. Sometimes in this field, you will find attorneys who have a hard bias toward off-shore planning; others will have a strong preference for domestic asset protection trusts; while others may say just stay at home and take advantage of your strong Florida laws. What is best for you depends on your unique goals, unique bundle of assets, and risk tolerance.

Good asset protection planning often combines multiple layers of protection with multiple defense options – not unlike Geno Smith, the legendary basketball coach of North Carolina, who employed a successful basketball defense based upon applying multiple defensive schemes. Therefore, it is possible – and commonly used – to employ multiple asset protection techniques: some assets will be protected by Florida law, some assets by a Delaware LLC, other assets by a Nevada Asset Protection trust; if the Nevada Asset Protection Trust is seriously threatened, it can be moved off-shore and established as a Nevis Asset Protection Trust or a Cook Island Asset Protection Trust.

3. Not Based Upon Concealment

Many lay persons believe that they can protect their assets by concealing them from creditors. For example, it may be tempting to transfer an investment real estate property to a family member or friend. Such transfers are likely doomed to failure – and we are assuming your friend or family member does not get sued. The reason is two-fold. First, with modern discovery laws in the United States, a creditor can discover virtually any transfer you have ever made because they can simply depose you and you must tell the truth under penalty of perjury. In addition, there is always a paper trail, in the form of texts, email’s, bank transfers, or tax returns. The second reason concealment does not work is FUFTA, the Florida Uniform Fraudulent Transfer Act, F.S. 726. Under this law, transfers made “with actual intent to hinder, delay, or defraud any creditor of the debtor” may be clawed back. See Point #8,

Note: While concealment should never be a basis for asset protection planning, there may be value in maintaining a low public profile, so that when a creditor performs a Google search your investment entities do not show up. This could be particularly beneficial for any professional in a high-risk profession – such as a doctor, dentist, or health professional.

4. Take Full Advantage of Florida Law

It is often surprising to me that some Florida residents think they need to go to Wyoming or South Dakota to protect their assets when they often have good options under Florida law. Florida has one of the strongest (if not the strongest) homestead laws in the United States. Of course, this is one reason why O.J. Simpson moved to Florida: he purchased an expensive Florida home and claimed it as his primary residence.

For decades, Florida courts have done a superb job of protecting homestead. A good example is the Florida Supreme Court Havoco decision. In this case, Havoco obtained a $15,000 judgment against Hill. Three days before the judgment became enforceable, Hill purchased a $650,000 property claiming to make this property his homestead. Creditors argued this property could not be protected homestead because Hill converted non-exempt assets into the homestead with the intent to defraud his creditors. Despite the obvious intent to defraud the creditors, the court found the homestead was protected. See 790 So. 2nd 1018 (Fla. 2001).

Of course there are limitations to the Florida homestead protection that are beyond the scope of this summary. Florida homestead is a complex and often misunderstood protection where you need to consult with an experienced Florida attorney.

Florida homestead is not the only Florida law that residents should take advantage of. Real estate investors should almost always consider LLC’s – limited liability companies – to protect their real estate and limit creditors to an unattractive remedy called a charging order. The two fundamental take-aways on Florida LLC’s is that they should be multi-member (unless owned by a limited partnership) and they must have a robust LLC Operating Agreement drafted after 2012 because the Florida LLC law was fundamentally changed in 2012. See Basic LLC Checklist.

Other investments protected by Florida law are (1) IRA & qualified plan benefits; (2) wage exemption; (3) wage accounts (but only for 6 months); (4) life insurance, both term and cash value provided the policy is owned by the insured; (5) annuities; (6) Florida Pre-Paid Plans; (7) 529 college plans. Note: this is not a complete list.

5. Domestic Asset Protection Trust – That Can Be Moved Off-Shore – As A Core Planning Tool

Most persons considering the best way to protect their cash, stocks and other equities likely need a Domestic Asset Protection Trust (“DAPT”). This is where Florida residents usually need to consider another state jurisdiction because Florida does not protect “self-settled” trusts: a trust where the grantor is also the beneficiary. However, Nevada, Delaware, Alaska and other states do have strong legislation protecting self-settled trusts.

Nevada has modern laws designed for robust DAPT’s. The 5 major advantages of a Nevada DAPT are: (1) no state income tax; (2) 2 year statute of limitations for future creditors; (3) 2 year statute of limitations or 6 months from date of discovery for pre-existing creditors; (4) No pre-existing torts exception creditors; (5) allows self-settled trusts. For a more complete discussion of such trusts, and specifically the Hybrid Nevada DAPT, see my article Nevada Asset Protection Trusts: Your Best Option?

6. Asset Protection Plan integrated with Estate Plan

Prior to the new federal tax law, the Tax Cut and Jobs Act of 2017, much asset protection planning could have a sound estate tax avoidance rationale. Now, with the estate tax exemption of $5.6 million in 2026 (the current exemption is $11.2 million, but this is temporary and drops down to $5.6 million in 2026) such a rational is not realistic for many persons. However, there are often fundamentally sound estate planning reasons to do such planning because a good asset protection plan should usually be integrated with your estate plan. Usually the goals are not just to protect your assets now and for the rest of your life, but also to protect them for your children and grandchildren. No one wants to spend your life working to build a valuable nest-egg, only to see a big piece of this nest-egg lost in your child’s divorce case. Further, the core component of most estate plans is a revocable living trust; such a trust must be integrated with all domestic corporate entities and other trusts. The take-away here is that you should not do asset protection planning without connecting and integrating it with your estate plan. If challenged, you have a legal basis to claim that transfers made were done as part of your over-all estate planning, and not attempts to “to hinder, delay, or defraud any creditor”.

7. Insurance As War Chest – Not An Incentive For Lawsuit

Insurance – such as malpractice insurance for the professional or casualty insurance for the real estate investor – is a critical component of a comprehensive asset protection plan. However, in determining how much insurance you need consider that a primary purpose of your insurance should be to give you a war chest to defend a legal attack. More commonly, insurance is an incentive to a lawsuit. The first request you will get from a personal injury for a person injured at your business is a demand letter for disclosure of all insurance that you have on the property. You are required to disclose this information under Florida law. If the damages are substantial, the PI attorney will want to go beyond the policy limits and sue you personally. Insurance – not coupled with an asset protection plan – is a big incentive for a lawsuit; it is the equivalent of putting a bulls-eye target on your assets. Under our Porcupine Asset Protection Strategy we want to minimize any such incentive. Therefore, the two big take-aways here are: First, have adequate insurance to fund a war chest to vigorously defend a lawsuit. Second, do not rely simply on insurance – take advantage of Florida law and other laws to protect these assets with a good asset protection plan. In the long run, such a plan is far cheaper than paying for large insurance policies.

8. Timing Is Critical

Timing is one of the most critical considerations in asset protection planning. Asset protection planning is usually not viable after:

• Parent of 18 year old driver who seriously injures a young biker
• Owner of rental real estate where late night party results in a fight and guest getting stabbed;
• The doctor who is served with a summons after a botched surgery;
• Pre-divorce planning by a husband trying to scam his wife (or wife trying to scam her husband. (Here there is a good pre-marriage legal solution: it is called a Prenuptial Agreement.)
• Owner of house where worker pressure cleaning the roof falls off and breaks back.

In such situations it may be too late to do any planning. The reason is FUFTA: Florida Uniform Fraudulent Transfer Act, F.S. 726. This is a powerful creditor civil remedy (not a criminal remedy) that allows a creditor to claw back any transfer made “with actual intent to hinder, delay, or defraud any creditor of the debtor”. Creditors may rely upon the “badges of fraud,” such as making transfers to an asset protection entity that renders the creditor insolvent.

The take-away on this is simple: Plan when waters are quiet – before the problem arises. Do not put this planning off to another time; do it now.

Conclusion

Asset Protection Planning covers a wide breadth of law; it requires an experienced attorney who concentrates in such planning. For more information contact Rarick Trusts & Wills Law at info@raricklaw.com or call (305) 709-2858.

7 TIPS 1. Before You Clean Up Document Your Losses

Do not start clean up until you have documented your losses from Hurricane Irma. Use your cell phone to document your structural, equipment, and water damages with ample video and pictures. (Hopefully you also took pictures immediately prior to Irma.) Document everything, and then make a back up of those pictures/videos. Get a notebook and keep a log of all actions taken and all expenses, such as mitigation, clean up and professional fees. Of course, save all receipts.

2. Gather & Review All Insurance Policies

For damage to your home, the most obvious source of coverage is your residential property insurance policy. However, there may be other policies such as a separate flood insurance policy. In addition, you may have coverage under auto, boat, and marine policies. If you are faced with a potential claim from a third party, you may have a liability policy and an umbrella policy.

For business owners you need to review your commercial property policy. Flood loss is commonly excluded from residential policies but may be covered under your commercial policy.

If you do not have flood coverage, you still may have coverage under another policy where the covered cause contributes to the loss, such as wind, power outage, storm surge or other area wide causes.

3. Put Your Insurance Company on Written Notice

As soon as you have been able to assess the damages – and even if you have not been able to assess all the damages – put your insurance company on written notice by sending an email to the carrier. Even if you are not sure of coverage, put the company on notice. A notice is simply that: a notice that you may have a claim. There is no reason to delay. Make sure the notice is in writing – email is usually the best and fastest and sent to the agent required by your policy. At the top of your email put, “Please Confirm Receipt” and save all confirmations. In addition, most popular programs such as Outlook, allow you to get a “Delivery Receipt” and “Read Receipt”. Always try to get a confirmation of receipt.

Note: For water damage from Hurricane Irma be careful about the language you use to report it. Since many residential policies exclude damage from floods but do cover “wind-driven rain”, it may be best to contend that your house suffered “water damage” rather than state that “my house got flooded”. A professional adjuster can help assess whether the damage is caused by “wind-driven rain” or a flood. Never misrepresent your loss, but don’t help the insurance company by reaching premature conclusions that give them an excuse for denying coverage.

4. Demand An Insurance Adjuster Inspect Your Property ASAP!

Do not tolerate unreasonable delay by your insurance company. Yes, the insurance company representative may have a heavy case load following Hurricane Irma but you want to be near the front of the line. After you give notice, put the ball in the court of the insurance company: expect and demand that the company send an adjuster immediately to photograph your losses. If they fail to do so, document your requests via email. In the event the company acts in bad faith, proof of such delay will be critical to proving your case in court.

5. Assess Coverage for Business Interruption

If you have a small business, you may need to prove your lost profits for the time that the business was interrupted. Of course, the time frame for a hurricane such as Irma can begin well before Irma arrived, as most businesses had to close several days before the hurricane hit in order to give employees time to prepare. After the hurricane passed, there was down time for employees to return, since many evacuated out of state. Note: There are two main types of business interruption: one that covers for lost profits and one that covers contingent business interruption such as losses due to damage to customers or suppliers. The distinction between the two can raise complex issues. Your best answer to resolving these issues is a forensic accountant or public adjuster who specializes in assessing such revenue losses.

6. Mitigate Damages – Such as Mold

You can generally assume that you always have a duty to mitigate losses. If you have serious water damage, most policies require you to take prompt action to dry out the wet areas and will thereafter provide reimbursement for such costs. In South Florida, mold is a big issue. You may need to hire a professional mold remediation company that can do the clean-up and give you a warranty that the area will be free of mold for a period of time following the clean-up.

7. Hire Experienced Experts to Evaluate and Advocate

Remember the adjuster who reviews your loss is paid by your insurance company and your insurance company is in business to minimize loss. You may need to hire your own adjuster if the damages are significant to get a true, independent valuation. As mentioned, for business interruption, I strongly recommend securing the services of a CPA or public adjuster.

BIG WARNING: Be careful in signing an assignment of benefits to public adjusters or any remedial companies. Read the engagement agreement! If any questions, call your attorney.

5 TRAPS 1. Watch Out for Policy Deadlines: Calendar All Deadlines

If you miss a deadline in your policy, it could kill your claim. Therefore, after reviewing all your policies, calendar all deadlines, such as the deadline to file a proof of loss or file suit if you disagree with the insurance company. Also, it is good practice to put a “tickler” reminder on your calendar to advise you of upcoming deadlines.

2. Do Not Rely Upon Verbal Notice

If you report a loss by telephone, confirm that report with a follow-up email of your conversation with the insurance company representative. See Tip #3 above.

3. Do Not Disclose Information In Bulk

This caution applies to all claims, but is particularly important for business interruption claims. Be careful of requests from the insurance company for bulk downloads of your financial information. You should secure the advice of a professional adjuster to give the insurance company only relevant information to prove your claim.

4. Negotiate The First Offer: It May Be Low

You may get a good first offer – and you may not. Therefore, be prepared to negotiate your first offer. Insurance companies make profits by underpaying claims – not overpaying them.

5. Don’t Act Too Quickly To Release the Insurance Company

To close their case on your claims, insurance companies are going to want you to sign a release that will prevent you from having “settlor’s remorse” and asking for more payments at a later date. Beware of checks that state “Full and Final Settlement” because they mean exactly that: Full and Final. Prior to signing anything, or cashing any checks, it is advisable to first review the release – and the scope of that release – with your attorney.

How We Can Help

For over 20 years, we have helped small businesses in good times and bad – such as when big hurricanes like Irma strike and there is a need to resolve insurance claims. You pay for insurance for years to cover such times as these. It is time for your insurance company to step up – quickly. We are available to meet with you and assess your claims. Our initial consultation fee is $275. To schedule a consultation contact Christy at Rarick Trusts & Wills Law, (305) 709-2858 or email me at prarick@raricklaw.com. We look forward to working with you.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Weston business and estate planning attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Here is a simple fact: most small businesses cannot afford or even survive a major dispute between partners if the dispute ends up in court. Such disputes can doom the small business due to interruption of the company business, distract the principal partners from focusing on growth, and soak up all capital needed to sustain the company.

The following are 5 Take Away Points for avoiding court intervention in your business:

1. Find a creative business attorney with a proven track record in resolving business disputes – outside of court. You often need a creative asset protection attorney with a good business and tax background. Typically, each side has to realize they will not get 100% of what they want – there will need to be compromise. But this compromise will be far less costly and destructive than having a bureaucratic court intervene.
2. Do the economic analysis. In other words do the math. Compare the cost, time, business interruption, and uncertainty of going to court with the minimal costs and certainty of reaching an agreement outside of court. Even a simple dispute can cost $20,000 to resolve if each side has to file court pleadings.
3. Do the litigation risk analysis. Litigation always involves risk. You risk getting a judge or jury who may not understand your case regardless of how strong it is. Every good litigator will emphasize this fact in their engagement letter with you: he or she cannot guarantee any results – there is no such thing as a “slam dunk” legal case.
4. Find a friendly forum. A court venue is by definition a non-friendly forum, and is designed to encourage expensive discovery and expand the contentious issues. A mediation venue is designed to encourage compromise, narrow the issues, focus on the big ones, and reach settlement quickly.
5. Preemptive Planning to avoid disputes. By far the best solution is to pre-empt disputes in the first place by having a clear agreement for resolving disputes, and a clear exit strategy if disputes cannot be resolved. This means that whenever you have one or more partners you should have an Operating Agreement, if you have an LLC, or a Shareholder Agreement, if you have a corporation. You may be best of friends with your partner now, but of course, just like you, your partner is going to put his or her interests, and the interests of his family first if disagreements arise.

Jay Beskin and I have over 50 years of combined experience helping business partners reach amicable agreements even though the differences between the partners first appeared to be insurmountable. Helping the small business owner grow and succeed while avoiding court intervention has been a major theme of Rarick Trusts & Wills Law for many years. For more information about our Miami asset protection services, contact us as (305) 709-2858 or info@raricklaw.com Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Note: We welcome your questions. Contact Phil Rarick, Miami asset protection attorney, Rarick Trusts & Wills Law, P.A., at (305) 709-2858 or prarick@raricklaw.com.

* With special thanks for ideas from Alan Gassman, Esq., estate & asset protection

planning attorney, guru, and friend. Alan is the author of Creditor Protection For Florida Physicians, an excellent and insightful book for physicians, attorneys, and CPA’s; it is available on Amazon.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Note: We welcome your questions. Contact Phil Rarick, Miami asset protection attorney, Rarick Trusts & Wills Law, P.A., at (305) 709-2858 or prarick@raricklaw.com.

* With special thanks for ideas from Alan Gassman, Esq., estate & asset protection

planning attorney, guru, and friend. Alan is the author of Creditor Protection For Florida Physicians, an excellent and insightful book for physicians, attorneys, and CPA’s; it is available on Amazon.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

For more information, contact Phil Rarick, a Miami asset protection attorney, at (305) 709-2858 or info@raricklaw.com.

* With special thanks for ideas from Alan Gassman, Esq., estate & asset protection planning attorney and guru.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

The saddest and most tragic call I have ever received as a lawyer came when a parent called and said her teenage son, while operating a jet ski, had run over a young girl who happened to be about the age of my daughter. I declined the case. The young girl later died, and of course there was a large law suit.

These are the nightmare scenarios you never want to encounter. Of course, the most obvious, common sense step to avoid such tragedies is to make sure that whoever is operating your boat or jet ski is well trained on operation of the vessel and in fact follows safe, recommended operating procedures. With the excellent and free Coast Guard training programs in south Florida there is no excuse not to take advantage of these programs.

After doing the common sense steps, here are three important legal points to know:

1. Do Not hold title in joint name with your spouse – or in your name alone

Holding title in joint name with your spouse is the worst way to hold title to a boat or jet ski. By doing this you have now opened up all assets you hold in joint name to attack in the event of a lawsuit. If you title the vessel in your name alone, you have exposed assets that you own to a lawsuit.

2. Insurance is good – but not enough to protect you

Clearly the vessel should be insured. However, if there is a serious accident, any good personal injury attorney will want to go beyond the policy limits and try to hold you personally liable.

3. Title the Vessel in a Florida, Delaware or Nevada LLC

So, if insurance is not enough, and you should not title the vessel in your name or joint with your wife, then what should you do? The answer is in three parts: (1) title the vessel in a LLC (limited liability company); (2) make sure the LLC has a good operating agreement that is properly structured by a corporate attorney; (3) form the LLC in a state that has strong asset protection laws for LLC’s, such as Florida, Delaware or Nevada.

Note: Many persons think that they can form a LLC for about $500 using an on line company. There is the well-worn saying that “You get what you paid for”. In this case, you will get less than what you paid for – something that is essentially worthless.

Your comments or questions are welcome. Contact Phil Rarick, Miami asset protection attorney, at (305) 709-2858 or info@raricklaw.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Summary:

The following Alert discusses the Florida real estate form DR-430 required to be filed upon the cumulative transfer or control of more than 50% of the legal entity that owned the property, or transfer of more than 50% of ownership interest.

Notice of Change of Ownership of Control of Florida Non-Homestead Property On January 28, 2009 voters approved an amendment to the Florida Constitution which would impose a 10% cap on the yearly increase in the amount that non-homestead Florida real estate may be assessed. The 10% cap became effective January 1, 2009 and the 2008 value assessments on a property are the base value for that property. Form DR-430 In order to keep track of ownership and assess the appropriate tax to a property the Florida Department of Revenue in conjunction with the property appraiser’s offices for every county in the State of Florida created Florida Department of Revenue Form DR-430. This form tracks the change of ownership of any non-homestead property. A change of ownership or control in non-homestead property according to Fla. Stat. § 193.1554 & 193.1555 equates to a cumulative change of more than 50%. This includes any sale, foreclosure, transfer of legal or beneficial title in equity to a person or the cumulative transfer of control of more than 50 % of the legal entity that owned the property when the most recent assessment was done. The one exclusion from the need to report a change in ownership of property owned by an entity is if the transfer of interest to an entity is to the spouse of the previous owner. Penalty for Non-Compliance If the property owner does not notify the property appraiser of the change the owner will be subject to pay the taxes avoided as well as a 15% interest per annum on all the unpaid taxes and a 50% penalty of the taxes avoided. These sums can be collected for any taxes avoided up to ten years preceding a determination of failure to pay appropriate taxes. Where to File The DR-430 should be filed with the property appraiser’s office for the county in which the real estate is located. Special Note The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami trust attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

The Family Limited Partnership, (the full legal name is family limited liability limited partnership (FLLLP) is designed to accomplish asset protection, tax and non-tax goals.

First, it provides protection from claims of creditors for the partnership assets. Creditors of a partner can only obtain a charging order entitling them to a share of partnership distributions. They cannot become partners and cannot participate in the management of the partnership, unless the other partners elect them to partnership. Second, it shifts assets to and among the other partners, in proportion to their respective partnership interests. Thus, for example, if you contribute all of the assets to the partnership and retain a 2 percent general partnership interest and give a 49 percent limited interest to each of the two other partners, you will have made gifts to them of 98 percent of the assets of the partnership. You will, however, have retained managerial control over the partnership as you will be the general partner. Third, it removes the other partners’ share of the partnership assets from your estate and that of your spouse, for federal estate tax purposes. Your estate will include, of course, the value of the stock of the general partner that you retain, and the value of any limited or general partnership interests you retain personally. Fourth, it shifts the income tax on the income from partnership assets and activities to the other partners, in proportion to their partnership interests, and away from you. Fifth, it assures that the partnership assets are held in a single fund, and managed by the general partner. Sixth, all of your transfers of partnership interests to the other partners are treated as a gift by you to the other partners for federal gift tax purposes. Your gifts of partnership interests to the other partners qualify for the gift tax annual exclusion ($14,000 in 2013). Gifts above this figure will require you to use up part of your $1 million gift tax exemption or pay gift tax. Seventh, you and your spouse can elect to gift-split with respect to your gifts of partnership interests. This allows you to use two gift tax annual exclusions and two gift tax exemptions to shelter these gifts from current tax. Gift splitting requires that you file a current gift tax return to report the gifts, even if no tax is due. Eighth, it vests the control and management of the partnership assets in the general partner. The limited partners have only very limited rights to be involved with the management of the partnership, and so their partnership interests are usually less marketable than outright ownership of the underlying assets, and they are usually valued, for estate and gift tax purposes, with significant valuation discounts that range from 30-35%. For more information contact attorney Phil Rarick, Miami asset protection attorney, at (305) 709-2858. Special Note The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an attorney that is experienced in Florida asset protection planning law. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.