Domestic Asset Protection

Florida Asset Protection.

Q: How strong is the Florida homestead exemption?

Florida's homestead is among the strongest in the nation — it is constitutional and unlimited in value, subject to size limits (roughly half an acre within a municipality, up to 160 acres outside one) and federal bankruptcy timing rules. It protects your primary residence, but not investment property, business interests, cash, or securities, which need separate structuring.

Some of the strongest exemptions in the country, and one well-known trap. After Olmstead, a single-member Florida LLC can be taken by a creditor. The fix is structural.

Reviewed by Elizabeth A. Tresp, JD, LL.M., trust & probate litigator · Updated July 2026

In short Florida offers some of the country’s strongest exemptions, an unlimited homestead, tenancy by the entirety on all property, head-of-household wage protection, and unlimited annuity and life-insurance protection. But there is a well-known trap: after the Florida Supreme Court’s Olmstead decision, a single-member LLC does not get charging-order protection, and a creditor can take it over. The fix is structural, and it is exactly where planning matters.

Florida’s strengths, and the single-member trap

Unlimited homestead exemption (constitutional; size-limited, not value-limited)
Tenancy by the entirety, shields property from one spouse’s individual creditors
Head-of-household wage protection; unlimited annuity and life-insurance exemptions
Charging-order-exclusive protection for multi-member LLCs
Single-member LLCs are exposed after Olmstead v. FTC (2010)
Not a self-settled-trust (DAPT) state

The single-member LLC trap

In Olmstead v. FTC (2010), the Florida Supreme Court held that a creditor of the sole member of an LLC is not limited to a charging order, the creditor can foreclose on the interest and take over the company. A single-member Florida LLC that looks like asset protection may offer very little. The common fix is to make the LLC genuinely multi-member (often by adding an irrevocable trust as a member) so it qualifies for Florida’s charging-order-exclusive protection. This is precisely the kind of detail that separates a structure that holds from one that fails.

Building real protection in Florida

Florida’s exemptions are excellent for a residence, a spouse-owned asset, wages, and insurance products. For business interests and investment real estate, protection depends on getting the entity structure right, multi-member where charging-order protection is the goal, and, for stronger coverage, layering in a trust from a dedicated DAPT jurisdiction or an offshore structure. Because Florida is not a self-settled-trust state, that trust layer generally lives elsewhere.

When it is time to form and maintain the entity or trust, our affiliated Tresp Corporate Services handles formation, registered-agent service, and corporate compliance in all 50 states, corporate paper and compliance only, never legal advice, while our attorneys handle the legal strategy and asset-protection compliance. We explain the why; they execute the how.

The right home for your structure depends on your assets, where you live and operate, your exposure, and your goals, and we have worked across the leading domestic and offshore jurisdictions since 1992. To find out whether this state fits your plan, or whether another serves you better, call (858) 755-6672.

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Common questions

Frequently asked

Does a single-member LLC protect my assets in Florida?

Often much less than people assume. After the Florida Supreme Court's 2010 Olmstead decision, a creditor of the sole member of a Florida LLC is not limited to a charging order and can foreclose on and take over the company. Florida's charging-order-exclusive protection applies to multi-member LLCs. The common fix is to make the LLC genuinely multi-member, frequently by adding an irrevocable trust as a member, which is exactly the kind of structuring we handle.

How strong is the Florida homestead exemption?

Florida's homestead is among the strongest in the nation, it is constitutional and unlimited in value, subject to size limits (roughly half an acre within a municipality, up to 160 acres outside one) and federal bankruptcy timing rules. It protects your primary residence, but not investment property, business interests, cash, or securities, which need separate structuring.

This overview is general information, not legal or tax advice, and does not create an attorney-client relationship?

This overview is general information, not legal or tax advice, and does not create an attorney-client relationship. State statutes change and their application depends on your specific facts; creditor-protection outcomes are never guaranteed. Consult a qualified attorney about your situation.

This website is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Every situation is different; please consult a qualified attorney about your specific circumstances.

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