Protect Assets Strategy

How can I protect their assets from the skyrocketing cost of medical care. I’m particularly interested in what happens after medicare runs out. Will their assets be taken by government, hospitals, doctors, etc. How can I protect them? Chances are they will need much more hospital, nursing, drug coverage. Do I check gap coverage? set up a trust(will that protect them?) They only have a will with 6 figure in assets.

It’s too late. They’re too old for longterm care insurance. And the Medicaid lookback is 5 years, not 3, which is probably pretty close to their life expectancy. Even if you set up a trust, that will be considered giving away their assets and you have the same 5-year lookback.

Yes, their assets could be taken by the hospital, doctors, nursing home, etc etc if they need care. That’s the way our system works. However, if one spouse needs longterm care and the other stays in their home, the at-home spouse is entitled to keep some assets plus the house (up to about $110,000, depends on what state you live in).

Anyway, you’ve said you’re their "executor". An executor doesn’t have any authority until they die. Do you mean you’re their power of attorney agent?

How can I protect their assets from the skyrocketing cost of medical care. I’m particularly interested in what happens after medicare runs out. Will their assets be taken by government, hospitals, doctors, etc. How can I protect them? Chances are they will need much more hospital, nursing, drug coverage. Do I check gap coverage? set up a trust(will that protect them?) They only have a will with 6 figure in assets.

It’s too late. They’re too old for longterm care insurance. And the Medicaid lookback is 5 years, not 3, which is probably pretty close to their life expectancy. Even if you set up a trust, that will be considered giving away their assets and you have the same 5-year lookback.

Yes, their assets could be taken by the hospital, doctors, nursing home, etc etc if they need care. That’s the way our system works. However, if one spouse needs longterm care and the other stays in their home, the at-home spouse is entitled to keep some assets plus the house (up to about $110,000, depends on what state you live in).

Anyway, you’ve said you’re their "executor". An executor doesn’t have any authority until they die. Do you mean you’re their power of attorney agent?

Can medicare be used in a nursing home or does the assets in the living trust get extinguished first?

A person still living is still beneficiary of a "living" trust, which at that time is for their benefit. And the living person still has control over it unless judged incompetent. Even then the trustee has to provide for the benefit of the living person. So it is not protected from creditors during their lifetime.

A living trust could make someone ineligible for public aid if, that is what you are after. You can’t get public aid and your inheritance too.

Can medicare be used in a nursing home or does the assets in the living trust get extinguished first?

A person still living is still beneficiary of a "living" trust, which at that time is for their benefit. And the living person still has control over it unless judged incompetent. Even then the trustee has to provide for the benefit of the living person. So it is not protected from creditors during their lifetime.

A living trust could make someone ineligible for public aid if, that is what you are after. You can’t get public aid and your inheritance too.

I have a foreclosure coming up soon in new jersey and i was wondering if setting up an limited liability company would be a smart move to protect cash monies. i live in florida so they cant touch my house here and as head of household they cant garnish my wages. i would like to put all my money into a bank account under my LLC.does anybody have knowledge of this kind of asset protection.

If the LLC is set-up for a legitimate business that yes it is a good idea. If you are setting it up as a way of hiding money with no legitimate reason for the LLC other that to stash assets, then your LLC is pretty worthless. You must prove that those assets are for business purposes.

I have a foreclosure coming up soon in new jersey and i was wondering if setting up an limited liability company would be a smart move to protect cash monies. i live in florida so they cant touch my house here and as head of household they cant garnish my wages. i would like to put all my money into a bank account under my LLC.does anybody have knowledge of this kind of asset protection.

If the LLC is set-up for a legitimate business that yes it is a good idea. If you are setting it up as a way of hiding money with no legitimate reason for the LLC other that to stash assets, then your LLC is pretty worthless. You must prove that those assets are for business purposes.

Do people incorporate a start up business to protect their assets from their relatives and/or former spouses? This idea has crossed my mind, even though I really don’t have anything more to incorporate than a domain name.

Is this a good or bad idea? Is it different than asset management?

That’s a great idea. Incorporate, put all of your assets into the corporation, and no one can ever claim it because it’s protected by the corporation.

Both my mother in law and father in law have both been placed in a nursing home for what appears to be long term. How can they protect their assets? How do the five year look back laws play into their decision?

If there are significant assets, look into a Trust.
Have a Lawyer review any nursing home contracts.
Those can be rapacious.

Both my mother in law and father in law have both been placed in a nursing home for what appears to be long term. How can they protect their assets? How do the five year look back laws play into their decision?

If there are significant assets, look into a Trust.
Have a Lawyer review any nursing home contracts.
Those can be rapacious.

I have no faith in the dollar. The economy is going down the drain. I don’t want to put my money in the bank because the dollar is just going to depreciate. The only thing that seems to raise in value are gold and food. Is it too early to give up on the economy now and invest my money in things that have more value? What advice can you give me?

It all depends on how much cash you have and how long you can miss it for investment purposes.

I put about half of my money in mutual funds (tax friendly assets because I won’t have to pay estate tax over their value) and half in savings accounts (part of it tied up for 10 years to nail down a 4.25% interest rate). The reason I put some of my money in savings is I plan to buy a house in about 5 years and I do not want to have the risk of waiting for a down stocks market to rise again.

I trust stocks but you need to have the luxury of waiting for the right moment to cash in. My mutual funds investment are for retirement purposes so I have all the time in the world.

I only lost money in gold so I would never advise that for anyone. Of course for me it is different because I take a double risk (gold price in itself and USD vs EUR currency risk).

It is important to ask yourself. Why am I saving this? Is it for retirement, or for buying a car in a few years or something else? The amound and timeframe will dictate what options are most feasible.