Posts tagged "creditors"

In Florida probate, when is homestead property not given homestead protection?

Article X, Section 4 of the Constitution of Florida provides protection against the claims of creditors for a person's homestead, i.e. their principal residence. In essence, if a homeowner owes money to a creditor, that creditor cannot attach or force sale of the residence in order to receive payment. The same concept applies if the owner dies owning a homestead. In other words, if a homeowner owes a creditor (such as a credit card, medical bills, etc.), when the person dies, the creditor usually cannot collect against the homestead. The homestead is exempt form the claims of creditors.

Voluntarily Filing Probate to Resolve Creditor Claims

With effective estate planning, probate in Florida can almost always be avoided. This can be accomplished by establishing a Living Trust (also referred to as a "Revocable Trust") and transferring assets into the Trust before death. Avoiding probate may also be accomplished by use of beneficiary or "pay-on-death" designations with certain financial accounts, annuities, retirement accounts and life insurance policies.

What is a "Spendthrift" Provision in a Florida Trust?

Most well-drafted Trusts contain a spendthrift provision-also sometimes called a restraint on alienation provision. Such a provision sets forth special language preventing creditors from attaching or "taking away" the interest of a beneficiary named in a Trust. Florida law enforces spendthrift provisions so long as they apply to both voluntary and involuntary transfers.

Resolving Creditor Claims in Florida Probate

When a Florida resident dies and owes creditors (such a credit card balances or medical bills), Florida probate procedures establish a mechanism to resolve those creditor claims. The process starts by having the Personal Representative of the estate sign a document called a "Notice to Creditors." The Notice informs creditors of the pendency of the probate estate and of the deadline for filing a creditor claim in the probate.  

Medicaid Claims Against a Florida Estate

As is commonly known, Medicaid is a federal program which provides healthcare benefits to certain persons with low income. The program is administered at the state level. Section 1917 of the Federal Social Security Act (42 USC § 1396(p)), and 42 CFR 433.36, require that States recover medical assistance payments made to, or on behalf of, a Medicaid recipient from the assets in the estate of that deceased recipient. 

In Florida, are assets protected from a Settlor's creditors if held in a Living Trust?

Florida estate planning attorneys are often asked whether assets held in a Living Trust, also known as a Revocable Trust, are protected from the creditors of the Settlor of the Trust (i.e. the person who set it up). As with so many questions under the law, the answer is "It depends."

Email us for a response

We Can Resolve Your Legal Issues

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Our Location

14497 North Dale Mabry Hwy
Suite 160-N
Tampa, FL 33618

Phone: 813-280-0082 (AT)
Fax: 813-968-9426
Tampa Law Office Map