As Loveland, OH asset protection lawyers, we help people who are concerned about potential legacy erosion. There are various sources out there, and we will look at the potential threats and the solutions here.
Small Business Asset Protection
If you own your own business, you should be concerned about asset protection, and the business structure that you use is key. When you have a sole proprietorship, there is essentially no difference between your personal property and your business.
Your belongings would potentially be available to litigants seeking redress if the business is sued for some reason. As a response, you can use a different business structure, and the limited liability company (LLC) is an option that is widely embraced.
Simply put, there is a layer of separation between your business and your personal life. If the business is sued by a creditor or another type of litigant, generally speaking, your personal property would be protected. This asset protection works in the reverse direction as well.
There are a couple of exceptions to the rule. If you personally and directly cause harm to someone else while you are on the job, you could be held liable. And you would be on the hook if you personally guarantee a loan that is used for business purposes.
A lot of people do not like the idea of veering away from a sole proprietorship because they like the tax structure. You can include business profits and losses on your personal income tax returns. This is called pass-through taxation, but it is not lost if you utilize an LLC.
Another option that is better for some people is a family limited partnership. As the name would suggest, the people in the partnership must be members of the same family. Once again, the personal property of the partners is protected if a family limited partnership is sued.
With this in mind, the partnership could own a business, or an apartment building that is rented out for profit. 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 paid long-term eventually, and Medicare does not cover custodial care. Nursing homes and in-home caregivers are very expensive, so the impact can be devastating if you need long-term care for an extended period of time.
Plus, a married couple may be looking at two different sets of nursing home expenses. Fortunately, there is a solution in the form of Medicaid coverage. 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 $2000 in countable assets in your name. You can transfer assets out of your personal possession, but there is a five-year look back. The divestitures 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 think that they may need living assistance.
If this describes your situation, and you can convey income producing assets into an irrevocable trust. You would still be able to accept distributions of the trust’s earnings until and unless you apply for Medicaid coverage. Assets in the 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 Webinar!
We conduct webinars on an ongoing basis that cover asset protection and other important topics. There is no charge, they couldn’t be any more convenient, and there is a special perk. If you join us, you will qualify for a 60-minute virtual consultation, which is a $425 value.
You can see the dates and obtain registration information if you head over to our webinar page.
Need Help Now?
Our doors are open if you have already determined that you are ready to work with a Loveland, OH asset protection lawyer to put a plan in place. You can send us a message to request a consultation appointment, and we can be reached by phone at 513-721-1513.