Asset Protection Trusts and Florida
An asset protection trust is an irrevocable trust structured to protect assets from the settlor's future creditors. While Florida does not authorize domestic self-settled asset protection trusts, Florida residents have access to several powerful state-law protections and can establish trusts in other jurisdictions.
Florida's Position
Unlike states such as Nevada, South Dakota, and Delaware, Florida has not enacted legislation allowing residents to establish self-settled spendthrift trusts for their own benefit. A Florida resident who transfers assets to a self-settled trust within Florida does not receive creditor protection; the trust assets remain reachable by creditors under Chapter 726 (Uniform Fraudulent Transfer Act).
Available Florida Protections
Florida provides robust asset protection through other mechanisms. The homestead exemption offers unlimited value protection for the primary residence. Tenancy by the entireties protects jointly held marital property. Life insurance cash values and annuity proceeds enjoy blanket creditor protection under Sections 222.13 and 222.14. These protections, combined with properly structured LLCs and irrevocable third-party trusts, provide comprehensive asset protection planning.
Related Terms
- Irrevocable Trust
- Homestead Exemption
- Tenancy by the Entireties
Barnes Walker Estate Planning
Barnes Walker develops comprehensive asset protection strategies for Florida families and professionals. Contact us for planning guidance.
Florida Law Reference
Fla. Stat. Ch. 736 (Florida Trust Code)
The Florida Trust Code governs the creation, modification, and administration of trusts, including trustee duties, beneficiary rights, and trust termination.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC