What threats to my assets might I have overlooked?
If you are aware of a threat, you usually take steps to mitigate the damage that threat can do to you and your estate. It’s the threats that you are not aware of, therefore, that are the most dangerous. For example, have you considered how the cost of long-term care (LTC) could pose a threat to your assets? Unless you can afford to pay for LTC out of pocket, you may be forced to turn to Medicaid for help. The Medicaid asset limit and corresponding “spend-down” rules could result in the loss of a significant portion of your assets if you need LTC down the road. Another potential threat that most people overlook is the “in-law” threat. You already know that your own divorce poses a threat to your assets, but so does the divorce of a beneficiary. If your daughter and son-in-law decided to end their marriage, the assets gifted to your daughter could end up in your son-in-law’s possession as part of the divorce if you aren’t careful.