Consider Different Ways to Secure Your Assets
There are many ways that this can happen, and we will look at the potential threats and asset protection solutions here. When you have a sole-proprietorship, your personal property is treated the same as your business. Your personal property could be at risk if your business is sued. This allows you to separate your business from your personal life. In general, if the business is sued, your personal assets will be protected. This asset protection also works in the opposite direction.
There is one exception to this rule. You could be held responsible if you personally cause harm to another person while on the job. You could be held liable if you personally guarantee the loan for business purposes. You can include the business losses and profits on your personal tax returns. This is called pass through taxation. However, it is not lost when you use an LLC. The partnership must consist of members from the same family, as the name suggests. The personal property of partners is protected in the event that a family limited partnerships is sued. You can actually have multiple family limited partnerships that hold different respective properties to provide multiple layers of asset protection.
Nursing Home Asset Protection
The majority of senior citizens will need to pay long-term care eventually, and Medicare does not cover custodial care. The cost of nursing homes and in-home care can be crippling if you require long-term care. Medicaid coverage is available as a solution. There is also a Medicaid waiver that will pay for a professional in-home caregiver.
This is a need-based program, so you can’t qualify if you have more than $2,000 in countable assets in your name. Transferring assets out of personal possession is allowed, but only after a five-year period. Ridding yourself of your assets must be completed at least five years before you submit your application.
Many people need the income that is generated by assets that they have invested. As a result, they cannot give away their nest eggs long before they need living assistance.
If this describes your situation, you can transfer income producing assets into an irrevocable trust. You can still accept distributions from the trust’s earnings, even if you don’t apply for Medicaid. Assets in the irrevocable trust would not count if you do seek eligibility as long as the trust was funded at least 60 months before you submit your application.
Attend a Free Learning Event!
We host events on an ongoing basis that cover asset protection and other important topics. There is no charge, so this is a great opportunity.
You can learn more and register by clicking here..
Need Help Now?
If you’re on the fence about working with an attorney you are unfamiliar with, you may want to cruise over to our testimonials page. We are happy to assist you if you choose to move forward. Call our Oklahoma City office at 405-843-6100, or Tulsa at 918-615-1700 to find out how we can best serve you. Use our contact form to send us a message. Latest posts by Larry Parman Attorney at Law.
(see all)
