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Have you heard about the Florida homestead exemption and wished you could enjoy that level of security?

Have you heard about the Florida homestead exemption and wished you could enjoy that level of security? It may not be out of reach; owning Florida property through a Florida LLC or Limited Partnership complicates tax issues but provides owners with “charging order protection” from creditors.

“Charging order protection” limits creditors rights to that of a lien against any distribution that may be made from the LLC; in the case of a Florida LLC holding real estate, the timing of such distribution could be a long way off. Under Florida law, and depending on the structure of the LLC, the creditor of an individual partner has no means to compel a sale of such real estate nor the distribution of sale proceeds (sale proceeds could in fact be reinvested in another property).

If you own property in the US and have not fully thought through the US and Canadian tax consequences, as well as the legal implications of the alternative ownership structures now may be the time.

For those with business dealings or other activity abroad, are you aware that Canada has an “open door” policy with respect to the enforcement of foreign judgments? Have you thought through what your exposure might be should you be named as a defendant in a suit arising from your activities abroad? Have you considered holding assets in jurisdictions with a less welcoming approach to foreign judgments, or utilizing a foreign business entity to conduct those activities?

DISCLAIMER: This document is written for general information only. It is not intended as legal advice or opinion.

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