Here are the top five factors that can harm your asset protection strategy and what you can do to stop them.
Significant Medical Bills
Many boomers and seniors find themselves facing astronomical, wealth-draining medical bills due to serious illness or the need for long-term care. This is especially true for seniors who need round-the-clock nursing home care and cannot cover all of those costs with Medicare and long-term care insurance. In this situation, California asset protection attorneys will advise the use of asset protection trusts to protect wealth from Medi-Cal and nursing homes. These types of trusts must be drafted a certain way to protect assets, as an incorrectly executed trust can end up costing a significant amount in penalties and fines.
It’s an unfortunate fact of life that people get divorced. There are so many concerns in a divorce depending on the couple’s situation, but what happens to their assets is usually at the top of the list. Without a prenuptial agreement in place, wealth can be up for grabs in divorce proceedings, no matter the amount of time the marriage lasted. There are strategies to protect assets from divorce, but it’s best to consult with an asset protection attorney in California to determine which strategy best fits your situation.
Investment Property Foreclosures
Investment properties in foreclosure can be a huge threat to asset protection planning in California. Personal assets that are not properly protected can actually be included in the foreclosure process as a means to pay off debts. If you are thinking about investing in real estate, you should first speak with an asset protection lawyer to find out how to shield your wealth from any negative consequences that can occur as a result of a foreclosure on your investment property.
At Fault Car Accidents
Being wealthy can paint a target on your back. It’s usually safe to say that if someone of modest means were at fault in a car accident, they would not be pursued for as much money as a wealthier person. There are asset protection strategies that can be done before an accident happens in order to shield your wealth. It’s not that you’d ever expect to be in an accident, but the planning can help keep your wealth safe. However, keep in mind that just about every asset protection attorney would stress that this is not the case after the accident has already happened.
Business liabilities are similar to investment property foreclosures because personal assets can be open to lawsuits if your business assets are not properly shielded. LLCs, corporations, and other business entities can be created to separate business assets from personal assets, but proper planning with a California asset protection attorney is essential to ensure you have not left yourself open to any potential attacks.
If you have any further questions about asset protection planning and strategies to shield your wealth, or if you’d like to have your current asset protection plan reviewed to make sure it still meets your needs, please contact us at our California asset protection office at 800-244-8814 to set up a consultation.