What Florida Protects After a Settlement, and What It Does Not: The Statutes

By Dominic L. Scheer, Esq., Florida Bar No. 1022250 · Reviewed by Dominic L. Scheer, Esq. · Last updated September 28, 2026

Links go to the Florida Legislature's official statute site and to the U.S. Code as published by the House of Representatives. Statutes change; the text linked is the current version on the day this page was last updated, shown above.

Is my house protected from creditors in Florida?

Generally, yes. Article X, section 4 of the Florida Constitution provides that a homestead is exempt from forced sale under process of any court, and that no judgment, decree or execution shall be a lien on it, with exceptions for taxes and assessments, obligations contracted for the purchase, improvement or repair of the property, and obligations for labor performed on it. The exemption covers up to one-half acre of contiguous land inside a municipality, limited to the residence, and up to 160 contiguous acres outside one. The same section restricts how a homestead can be left at death when the owner is survived by a spouse or minor child; the statutory version of that restriction is section 732.4015, Florida Statutes.

Are retirement accounts protected?

Yes. Section 222.21, Florida Statutes provides in subsection (2)(a) that money or assets payable to an owner, participant or beneficiary from a fund or account maintained under the listed sections of the Internal Revenue Code (401(a), 403(a), 403(b), 408, 408A, 409, 414, 457(b) and 501(a)) is exempt from all claims of creditors. Subsection (2)(c) carries the exemption to an inherited account or rollover. Subsection (2)(d) says the exemption does not apply against an alternate payee under a qualified domestic relations order or a surviving spouse's elective share claim.

Are life insurance and annuities protected?

Yes. Section 222.14, Florida Statutes provides that the cash surrender values of life insurance policies issued on the lives of Florida residents, and the proceeds of annuity contracts issued to Florida residents, are not liable to attachment, garnishment or legal process in favor of any creditor, except a creditor for whose benefit the policy or contract was taken out. Section 222.13 provides that life insurance proceeds payable to a named beneficiary inure exclusively to that beneficiary and are exempt from the claims of the insured's creditors, unless the policy is payable to the insured or the insured's estate.

Does a revocable trust protect my assets?

No. Section 736.0505, Florida Statutes states in subsection (1)(a) that the property of a revocable trust is subject to the claims of the settlor's creditors during the settlor's lifetime, to the extent the property would not otherwise be exempt if owned directly by the settlor. A revocable trust avoids probate and provides for incapacity. It does not shield assets from your own creditors while you are alive.

Can I move money to family to protect it?

Not to defeat a creditor. Section 726.105, Florida Statutes treats a transfer as fraudulent as to present and future creditors if made with actual intent to hinder, delay or defraud any creditor, and also, without regard to intent, if made without reasonably equivalent value while the debtor was left with unreasonably small assets or intended or believed it would incur debts beyond its ability to pay. Subsection (2) lists the badges of fraud courts look at, including transfers to insiders, retained possession, concealment, transfers shortly after a suit is threatened, and insolvency. Section 726.108 lists what a creditor can obtain: avoidance of the transfer, attachment, an injunction against further transfers, and appointment of a receiver.

How does a special needs trust work under federal law?

42 U.S.C. 1396p at subsection (d)(4)(A) describes a trust containing the assets of an individual under age 65 who is disabled, established for the individual's benefit by the individual, a parent, grandparent, legal guardian or a court, where the state will receive all amounts remaining in the trust at the individual's death up to the total medical assistance paid on the individual's behalf. Assets in such a trust are not counted for Medicaid eligibility. Subsection (d)(4)(C) describes the pooled trust alternative: a trust established and managed by a nonprofit association, with a separate account for each beneficiary, pooled for investment, with the state repaid from amounts not retained by the trust at the beneficiary's death.

What are the thresholds for a child's settlement?

Section 744.301, Florida Statutes provides in subsection (2) that natural guardians may settle and collect a minor's claim without appointment, authority or bond if the amounts received in the aggregate do not exceed $15,000. Section 744.387 provides in subsection (2) that a claim not exceeding $15,000 may be settled without bond and that a legal guardianship is required when the net settlement to the minor exceeds $15,000; subsection (3)(a) provides that once an action has been commenced, no settlement on behalf of a minor is effective unless approved by the court; and subsection (3)(b) requires the court to appoint a guardian of the property when the net settlement exceeds $15,000 and no guardian has been appointed. Section 744.3025 provides in subsection (1)(a) that the court may appoint a guardian ad litem when the gross settlement exceeds $15,000, and in subsection (1)(b) that the court shall appoint one before approving a settlement when the gross settlement equals or exceeds $50,000, unless a guardian with no adverse interest is already in place. Note that one statute measures the net settlement and the other the gross.

What should I do with this?

Read the plain-language page on protecting your settlement, gather your closing statement, and call before the money moves. The statutes above are the tools. The plan is the order in which you use them.

Frequently Asked Questions

Is a revocable living trust asset protection in Florida?

No. Section 736.0505(1)(a), Florida Statutes, makes the property of a revocable trust subject to the settlor's creditors during the settlor's lifetime to the extent it would not be exempt if owned directly.

What is the homestead acreage limit?

One-half acre of contiguous land inside a municipality, limited to the residence, and 160 contiguous acres outside a municipality, under Article X, section 4 of the Florida Constitution.

At what amount does a child's settlement need court involvement?

A legal guardianship is required when the net settlement to the minor exceeds $15,000 (section 744.387(2)); once suit is filed, any settlement needs court approval (section 744.387(3)(a)); and a guardian ad litem must be appointed at a gross settlement of $50,000 or more (section 744.3025(1)(b)).

Who can set up a first-party special needs trust?

Under 42 U.S.C. 1396p(d)(4)(A), the disabled individual under 65, a parent, a grandparent, a legal guardian, or a court, provided the state is repaid from what remains at death.