Purchase of Annuities Before Becoming Florida Residents

Jon Alper Florida Exemptions

Two clients had the same question last week about purchasing annuities. Both client were planning to move to Florida from another state where judgments were about to be entered against them. They are interested in buying annuities which are exempt under Florida law. They want to know if their annuities would be exempt in Florida if they are purchased while …

Can IRA Be Sued For As A Recipient of a Fraudulent Transfer?

Jon Alper Florida Exemptions

A new client invested in a ponzi scheme. He withdrew his investment, including a “profit” just before the ponzi scheme collapsed. The SEC appointed a receiver to go after investors who received profits as fraudulent transfers. Many courts have held that ponzi profits are fraudulent transfers that may be recovered to repay other investors. This client wanted to know if …

Asset Protection From Federal Criminal Restitution Judgments

Jon Alper Florida Exemptions

The Department of Justice can seek money restitution from criminals that wrongfully obtain other people’s money. A client sought asset protection advice to protect assets against an already issued restitution order. Asset protection against federal criminal restitution is difficult but not impossible.

Using Annuity To Protect Trust Distributions To Judgment Debtor

Jon Alper Florida Exemptions

An attorney called me to ask about his client who is facing a large civil judgment. The debtor/client is one of three children who is a beneficiary of an irrevocable trust established by a parent. The parent died. The trust agreement provides that after the parents death the trust is allocated into separate trust shares foe each of the three …

Bonus Not Exempt If Based Upon Company Profits

Jon Alper Florida Exemptions

A client’s professional association compensated all of the owners through a combination of fixed salary and bonuses. The firm made no profit distributions. Bonuses were distributed quarterly by vote of the partners, and amounts were based upon available cash flow. The client asked if all the compensation is exempt as wages if the client is head of household.

Self-Directed Retirement Plan Exposed Through Business Dealings With Third Party

Jon Alper Florida Exemptions

Occasionally I get phone calls about buying or titling investment assets in the a client’s retirement plan. There are rules that permit self-directed IRAs or self-directed 401ks to purchase income producing investments such as rental property or businesses. The details of self-directed retirement plans are beyond by expertise; this is mostly a tax law issue. I understand which someone may …

Non-Resident Eligibility For Head of Household Garnishment Exemption

Jon Alper Florida Exemptions

A South Carolina attorney called me to discuss a wage garnishment against his client in Florida. The client was a resident of South Carolina who was temporarily living and working in Florida. The attorney wanted to know if he could dissolve the garnishment because his client qualified for Florida’s head of household exemption from wage garnishment.

U.S. Supreme Court: Inherited IRA Is Not Exempt From Creditors

Jon Alper Florida Exemptions

When an IRA owner dies and designates an heir, other than his spouse, as the beneficiary of his IRA the beneficiary acquires an “inherited IRA” from the decedent. The federal bankruptcy exemptions state that IRAs up to a dollar limit are exempt and not part of the bankruptcy estate. This month the United States Supreme Court ruled that inherited IRAs …

Deferred Compensation As Exempt Wages

Jon Alper Florida Exemptions

One of my clients inquired about the exemption of proceeds from a deferred compensation plan. He wanted to know if his deferred compensation was protected as either deferred wages paid to a head of household or as a form of an annuity.