WARNING: Some planners, especially in Florida, utilize a loan structure to protect fixed assets which involves protecting the loan proceeds by purchasing an annuity or life insurance contract (the “contract”; both of which enjoy a limited exemption from creditors in Florida) and distributing the contract to the owners of the business as “non-taxable” deferred compensation (non-taxable because the continued ownership of the contract by the business owner is allegedly subject to a “substantial risk of forfeiture” if the owner leaves the business or loses his/her professional license). This plan is very risky from two perspectives: it is almost certain that the “tax-free” distribution of the contract will not be tax free (because the IRS will not respect the contrived “risk of forfeiture” for a closely-held business) and the ultimate protection depends upon a U.S. court upholding the referenced exemption (which can and has been successfully attacked several times). Finally, the interest paid on the loan will not be deductible (adding to the cost of the plan).