Safeguard Wealth and Assets
As your asset protection lawyers, we will assist you in implementing plans that will provide the most protection possible under the circumstances. We review your financial holdings and make recommendations that minimize the risk of loss from lawsuits, potential divorces, or nursing homes costs. Please contact us to schedule an appointment.
For all practical purposes, in the United States the only “insurance” plan for long-term institutional care is Medicaid. Lacking access to alternatives such as paying privately or being covered by a long-term care insurance policy, most people pay out of their own pockets for long-term care until they become eligible for Medicaid. Although their names are confusingly alike, Medicaid and Medicare are quite different programs. For one thing, all retirees who receive Social Security benefits also receive Medicare as their health insurance. Medicare is an “entitlement” program. Medicaid, on the other hand, is a form of welfare — or at least that’s how it began. So to be eligible for Medicaid, you must become “impoverished” under the program’s guidelines.
Also, unlike Medicare, which is totally federal, Medicaid is a joint federal-state program. Each state operates its own Medicaid system, but this system must conform to federal guidelines in order for the state to receive federal money, which pays for about half the state’s Medicaid costs. (The state picks up the rest of the tab.) This complicates matters, since the Medicaid eligibility rules are somewhat different from state to state, and they keep changing. (The states also sometimes have their own names for the program, such as “MediCal” in California and “MassHealth” in Massachusetts.) Both the federal government and most state governments seem to be continually tinkering with the eligibility requirements and restrictions. This has most recently occurred with the passage of the Deficit Reduction Act of 2005 (the DRA) which significantly changed rules governing the treatment of asset transfers and homes of nursing home residents. The implementation of these changes will proceed state-by-state over the next few years. The rules for gaining eligibility to the program are explained in detail in the Medicaid section of this site. But to be certain of your rights, consult an expert. He or she can guide you through the complicated rules of the different programs and help you plan ahead.
Those who are not in immediate need of long-term care may have the luxury of distributing or protecting their assets in advance. This way, when they do need long-term care, they will quickly qualify for Medicaid benefits. Giving general rules for so-called “Medicaid planning” is difficult because every client’s case is different. Some have more savings or income than others. Some are married, others are single. Some have family support, others do not. Some own their own homes, some rent. Still, a number of basic strategies and tools are typically used in Medicaid planning. These are described below.
When protecting assets an Irrevocable Trust is often implemented. It allows for assets to enjoy the maximum protection available under state law. These types of trusts also are a vehicle for minimizing estate and gift taxes. We will familiarize you with the terms of an irrevocable trust, giving you the ability to make an informed decision. Contact us for more details.
Real Estate Planning
As a real estate investor, I understand the stresses of property management and the risk of a lawsuit.. I’ll be happy to discuss asset protection plans that achieve your goals while minimizing the risk of loss With the use of trusts and limited liability companies, we have the ability to maximize protection without you giving up substantial control. Please contact us to schedule a meeting.