Indeed, ERISA laws protect 401(k) assets in most cases, and some states exempt IRAs and pension plans from creditors. Simpson was forced to hawk his Heisman Trophy to help pay part of his penalty, but moving to Florida let him take advantage of that state's generous exemption laws that protect qualified plans, annuities, primary residences and other assets from seizure by creditors.
But not all states are that munificent when it comes to asset exemption, so advisors need to be aware of their options. "There are a lot of people out there selling asset protection under a one-size-fits-all umbrella," says Adam Kirwan, partner at the Kirwan Law Firm in Orlando, Fla. "But every aspect of asset planning has its upside and downside, and which methods to use depend on the type of assets a client has and what their goals and needs are. Some of the simpler asset protection techniques can be some of the best."