Thoughtful Asset Protection Services In Boston
Asset protection is a field that covers many different techniques, including estate tax reduction techniques, off-shore trusts, domestic asset protection trusts, and Medicaid trusts.
Personalized Care That Works For Your Needs
There are many other ways to protect assets without using a trust, such as putting assets in a spouse’s name. For example, a wife who is not considered “at risk” could hold assets for a physician, CPA, or an attorney.
The technique could also be as simple as a homestead or using qualified plan assets, such as a 401(k) and a profit sharing plan, which are exempt from bankruptcy proceedings.
Even an IRA is exempt from a bankruptcy proceeding for an account balance up to $1,000,000.
Asset protection also deals with protecting your family assets from the cost of long-term nursing home care. Revocable Medicaid trusts and various types of commercial and private annuities may be utilized to protect your assets from the cost of long-term care. Please take a minute to explore our site and the various techniques available to you to protect your assets.
Frequently Asked Questions
Do you have questions about asset protection or estate planning? We have answers. Below are some of the questions we see most often:
When is the best time to start asset protection planning?
It is best to start with asset protection as soon as possible. After all, you never know when your family is going to need your estate plan or when the unexpected could happen. If you take steps in advance to explore all of your options to protect these valuable assets, you ensure that those protections are actually in place when they’re needed. This can also give you and your family members peace of mind, knowing that everything has been taken care of. Remember that you can always update your estate plan if things change in the future.
Can I protect my home or retirement accounts from creditors?
If you have employer-sponsored retirement accounts, they may already be protected from creditors under the Employee Retirement Income Security Act (ERISA). For other types of accounts or assets, such as your home or other real estate, one way to protect them is to put them into an irrevocable trust. The trust then owns the asset instead of you, which protects it from creditors. They may be able to take other financial assets that you have, but the assets that you’ve moved into the trust are owned by the trust and under the control of your named trustee.
What is the difference between a domestic and offshore asset protection trust?
Both domestic and offshore trusts can be used to protect assets. However, for those with high-value assets, an offshore trust may be more beneficial in some ways. The laws in that country may be more favorable, for example. Additionally, moving assets offshore often means that creditors in the United States are unable to access them, even if they would’ve been able to do so otherwise. It creates a greater degree of separation between your personal assets and those that are held by the trust in another country.
How does asset protection relate to Medicaid and long-term care planning?
Medicaid is often involved in long-term care planning because it can provide benefits to help cover the cost of care. However, there are asset and income limits, so someone applying for benefits has to pass a means test. If their income or asset levels are too high, they must spend them down before qualifying.
Planning in advance can help protect some of these assets. For example, transferring financial assets into a trust with adult children or grandchildren named as the beneficiaries can reduce the value of someone’s estate. This can allow them to qualify for Medicaid benefits without actually having to spend that money. It keeps the money in their family while still allowing access to needed benefits.
Work With A Massachusetts Firm That You Can Trust
If you have questions about asset protection and how it affects your family, send us an e-mail or call 888-759-5109 or toll free 888-759-5109. Free initial consultation.