How can I protect my inheritance from creditors? 4 Answers as of August 26, 2011

If you are living in the home, the best way is with the Florida homestead.

There is no simple way to determine the best protection for your home. The best solution for you is going to be an evaluation of your goals, your financial situation and what makes the most sense for your protection first, and then for your children. Please sit down with an Estate Planning Attorney to assist you with this process.

In order to answer your question, more facts are necessary. Did you receive a cash inheritance and pay off the mortgage on your home? Do you currently have creditors or are there any in the foreseeable future (i.e., possible lawsuits that you know may be filed against you)? That being said, your homestead, by virtue of the fact that it is your homestead, is exempt from creditors (other than the mortgage company, those who have done repairs to your home, and liens by an HOA for failure to pay dues/assessments). The Florida constitution protects the homesteads of Florida residents. That exemption goes to your heirs at your death (spouse, children, bloodline).

A lawyer would need extensive information to decide. Note that any means that does this will impair your ability to make decisions about, or sell, your own property, and some will have drawbacks.