The Dire Consequences of Not Having an Asset Protection Plan
Having an asset protection plan is one of the most important things that you can do. If you fail to make a plan to provide protection for your wealth, the consequences could be dire. The possible loss of property and money that you have worked for your whole life could mean you lose your financial security and that your family will lose its legacy.
You deserve to be able to have the wealth that you worked for used for your own purposes, to provide for your loved ones, or donated to charities that matter to you. You do not want to risk these things by waiting too longer to put an asset protection plan in place.
Zimmer Law Firm can help to make sure that you have a strong plan. Give us a call at 513.721.1513 to find out more about the ways in which our legal team can help you with the creation of an asset protection plan.
What are the Consequences of Not Having an Asset Protection Plan?
If you do not put an asset protection plan in place before something happens to threaten your wealth, it could be too late when you need the protection. In many cases, keeping assets safe must be done very early on if you do not want to face substantial risks that could end up costing you and your loved ones. Some of the many serious consequences of either waiting too long for your plan or not making a plan at all include:
- Having to spend your money and sell assets to pay for nursing home care. Nursing homes are expensive, and typically are covered only by Medicaid and not by any private insurance providers or by Medicare. Medicaid is needs-based and has limits on the value of resources you can own and still qualify. For many people who are above those limits, it is not possible to get nursing home care covered until you’ve spent down assets. You need to make a Medicaid plan to protect assets at least five years prior to going into nursing care if you wish to get maximum protection.
- Going bankrupt personally because your business goes bankrupt. Many people who start a business will lose personal assets if the business does poorly. This is because the owner and the company are considered one and the same unless the business has been incorporated or otherwise appropriately organized as a separate legal entity. If your business is sued or goes bankrupt, you could lose your personal wealth without taking steps to prevent that.
- Losing your wealth to a lawsuit against you. If you are sued by someone, your personal assets could also be at risk. Losing the lawsuit could mean victims are able to take steps to garnish wages, put liens on real estate, and make claims on your bank accounts.
- Becoming dependent upon family or friends. If you lose your wealth because you don’t have an asset protection plan, you could become dependent upon family and friends. If you have failed to make a plan for someone to manage your wealth in the event you become incapacitated, this could also create a bad situation for family and friends who are forced to go to court, pursue guardianship, and fight to get control of your assets.
- Not having enough money and facing constant financial stress: Not having enough money can be very stressful, especially if you are getting older and you cannot work. You want to spend your senior years enjoying your family and traveling or indulging hobbies- not worrying about how much money you have.
- Having no legacy to leave to your loved ones: If your assets are lost, you won’t be able to provide for charities or family members in your estate plan since you won’t have wealth to give.
These are just some of the many dire consequences of not having an asset protection plan. These consequences can be avoided by taking the right steps to ensure that your money is able to be kept safe.
How an Ohio Asset Protection Lawyer Can Help
An Ohio asset protection lawyer can provide you with help creating an asset protection plan. Zimmer Law Firm has assisted many clients with making full use of available legal tools to keep their wealth as safe as possible. To find out more, download our estate planning checklist or give us a call at 513.721.1513 to speak with a member of our legal team for personalized help.