You may have heard someone talk in passing about doing Asset Protection to protect their assets for the future. So, what exactly is Asset Protection Planning? There are a lot of misconceptions about this topic! Yahoo’s recent article entitled “How to Protect Your Money, Even If You're Not Rich” says that contrary to what many people believe, asset protection planning isn’t just for the wealthy. The estates of anyone, in any income group, can be sued or suffer from hefty taxation. The following strategies can mitigate the effect of creditor claims and other issues on your wealth.
For example: If you want and need to protect your assets, you should be proactive! However, if you have significant debt and few assets and you are subject to a lawsuit, it may be better to file for bankruptcy than to create an asset protection plan. That's because it's only worth it if you have significant assets, although some events cannot be protected against. These include tax liens, mechanics liens, alimony judgments and child support claims.
A plan done properly benefits these people the most:
Some assets aren’t subject to creditors, such as retirement accounts under the protection of the Employee Retirement Income Security Act of 1974 (ERISA).
You may also legally preserve at least a portion of your home equity. Homes may be put in another individual's name, but make no mistake, It is crucial that you meet with an attorney experienced and certified in elder law to discuss your specific situation and make sure this is done the right way, as to avoid any unnecessary complications or surprises later on!
The goal of an asset protection plan is to set a level of legal separation between you and your assets. This allows you to legally shelter your assets from creditors without doing anything illegal. This is no different than visiting a tax professional during tax time to make sure you receive all deductions allowed under the IRS code that you are entitled to under the law!
When you need answers to questions like "What Is Asset Protection Planning?" and are interested in finding out what options are right for you, just know that we are here to help! If you or a loved one are concerned about issues with situations like this, and in estate planning and elder law concerns including Asset Protection/Medicaid Planning and questions regarding long-term care and the nursing home, reach out to us! With the right planning and guidance done ahead of time, there is always a chance to protect what is important to you and your family! Book a call with us on our website: www.VAElderLaw.com to get started and learn more. We have offices in Bassett, Danville and Lynchburg to serve you.
Reference: Yahoo! (Nov. 6, 2022) “How to Protect Your Money, Even If You're Not Rich”
742 Main Street,
Danville, Virginia 24541
3371 Fairystone Park Hwy,
Bassett, Virginia 24055
810 Main Street, (3rd Floor of the Truist Building)
Lynchburg, Virginia 24504