There are a lot of common misconceptions out there about estate planning. One of the questions we get is “Can’t I just transfer some assets to my son or daughter to become eligible for nursing home benefits?” Actually, that is one of the worst things that you can do – you’ll actually create a penalty period - and so all of the advice that you’ve heard from a friend, a relative, or a neighbor – don’t do it unless you talk to us first. Give us a call – come on in for a free consultation at (317) … [Read more...] about Can’t I transfer some of my assets to my children to be eligible for nursing home benefits?
Asset Protection Planning
Medicaid planning is the key to avoiding the threat posed by the high cost of long-term care. As part of your Medicaid planning component you may create a special type of irrevocable trust known as a Medicaid trust. This trust will protect your assets and ensure that you qualify for Medicaid if you need it in the future. … [Read more...] about What can I do to protect my assets from the high cost of long-term care?
If you have a beneficiary who concerns you, either because of his/her spouse or because he/she has an addiction/gambling problem, one option is to create a spendthrift trust. A spendthrift trust prevents creditors or other third-parties from attaching trust assets and prevents a beneficiary from squandering the assets. … [Read more...] about Can I do anything about the possibility of a beneficiary squandering an inheritance?
Entering into a pre-nuptial agreement prior to the marriage, if both parties are willing, is the best way to protect your assets in the event the marriage ends in divorce. One thing you also need to avoid is “co-mingling” assets during the marriage which turns your separate property into marital property. … [Read more...] about What can I do to plan for the possibility of divorce?
Decreasing the value of your taxable estate is the key to avoiding (or diminishing) estate taxes. The annual exclusion is an estate planning tool that is frequently used to help with tax avoidance. This tool allows you to make gifts valued at up to $15,000 ($30,000 if you gift-split with a spouse) to an unlimited number of beneficiaries each year tax-free. Gift made using the annual exclusion do not count toward your lifetime exemption. … [Read more...] about What can I do to protect my estate from gift and estate taxes?
People often hold title to property jointly with a spouse or adult child under the belief that because the property is jointly owned it is safe from creditor claims or other threats. That is not always the case. The type of joint title you choose makes all the difference. Certain types of joint ownership protect each owner from claims or liens of the other owner(s) – usually this refers to joint title with rights of survivorship. With other types of joint ownership, however, your interest in the … [Read more...] about Can I use co-ownership to help me protect my assets?
A popular asset protection planning tools is a trust. For a trust to be an effective asset protection tool, however, it must be the right type of trust and the trust agreement must be properly drafted. Trusts are broadly divided into testamentary and living trusts. Testamentary trusts do not activate until the death of the Settlor whereas a living trust activates when all elements of formation are complete. Living trust can be further sub-divided into revocable and irrevocable living trust. A … [Read more...] about Can I use a trust to protect my assets?
If you have worked hard and invested wisely throughout your working years, you undoubtedly want the assets you have amassed to be available to help provide a comfortable retirement. Asset protection planning refers to the tools and tactics incorporated into an estate plan to prevent the various threats to your assets from causing you to lose some, or even all, of your assets. … [Read more...] about What is asset protection planning?
A threat you did not consider could do serious damage to your estate plan. For instance, have you considered how the cost of long-term care (LTC) could pose a threat to your assets? Unless you can afford to pay for LTC out of pocket, you may be forced to turn to Medicaid for help. The Medicaid asset limit and corresponding “spend-down” rules could result in the loss of a significant portion of your assets if you need LTC down the road. Another potential threat that most people overlook is the … [Read more...] about What are the threats I may have overlooked?
You may feel as though your existing estate plan already protects your assets – and it may very well already cover many of the common threats to your assets. For example, you may already have thought about how your own divorce could be a threat because of the required division of marital assets. Economic downturn and failed business ventures are also things people typically recognize as possible threats to their assets. Most estate plans also take into account the impact state and/or federal … [Read more...] about My assets are already protected in my estate plan, aren’t they?