How significant a role does exemption planning play in asset protection?

That answer mostly depends on the debtor's state laws. Several states – most notably Florida and Texas – are exceptionally debtor oriented. They exempt, or creditor proof, a wide range of assets. That's why a large number of debtors relocate to Florida. It is not so much to enjoy their favorable weather, as it is to take advantage of their generous exemption laws. For instance, Florida protects the entire value of your home, IRAs, life insurance and annuities, and wages. Many of our Florida clients need little or nothing more in terms of additional protection. The state exemption laws cover all – or most – of their assets. Texas is an equally debtor friendly state. On the other hand, a number of states are creditor friendly with narrow exemption laws. New Jersey is an example where relatively few assets are self-protected.

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