Proposed Law is Scary for Asset Protection Purposes
We have written pretty extensively on the Olmstead decision handed down by the Florida Supreme Court. It seems that many people, in addition to asset protection attorneys, are considering the potential long-term impact of that opinion, the Florida Legislature included. Bills that directly address the issues presented in Olmstead have been introduced in both the House and Senate chambers of the Florida Legislature.
Here’s the scary part: The bills seem to condone Olmstead. In the case of a single-member LLC, the proposed legislation states that a charging order is not the exclusive remedy in the case of a single-member LLC “if the judgment creditor establishes to the satisfaction of a court of competent jurisdiction that distributions under a charging order will not satisfy the judgment within a reasonable time.”
Laws Made By Judges Makes Domestic Asset Protection Almost Impossible
So here is what happened. First, the legislature enacted a law that made charging orders the exclusive remedy for judgement creditors of members of limited liability companies. Next, the Florida Supreme Court finds an unwritten exception to that law, which is a huge threat to anyone relying on the legislatively enacted statutes for asset protection purposes. Now the legislature is considering a new statute that blesses the Florida Supreme Court’s disregard of the original statute. So it begs the question: Who is really making our laws?
Judges made law is unpredictable. That’s largely because judges are human, and they can be swayed by emotion. One of the most famous jurists in the history of United States once said that a judge’s decision can hinge on what he ate for breakfast! Statutes, however, are written pronouncements of law intended to be relied upon by citizens. If, however, judges can disregard statutes (or find unwritten exceptions), then even statutes cannot be considered ironclad.
The Secret Weapon of Asset Protection Attorneys And Benefits of Offshore Trusts
There are many benefits to using offshore trusts. One benefit stands out above all the rest. Use of offshore trusts removes assets from the jurisdiction of unpredictable judges and mind-changing legislatures. Laws in many foreign jurisdictions are geared to make litigation over assets in an offshore trust almost completely impracticable. That’s why asset protection attorney loves them. It’s also why you should consider using an offshore trust to protect non-exempt assets like cash, stocks, bonds, and real estate.
By implementing a bulletproof asset protection plan, you can make sure that your assets are safe from a judge who ate a bad breakfast.
Please keep in mind that the proposed legislation discussed in this article is just that–proposed. It will be a while before we know if it is enacted into law. Feel free to review House Bill 253 and Senate Bill 1152 and call Lodmell & Lodmell if you have any questions.