Top Ten Asset Protection Pitfalls
1. Don’t rely on Wills or Trusts
Wills only take place upon deaths, and common living trusts will not protect assets from the government or nursing home.
2. Don’t rely on Medicare or health insurance
With most nursing homes in Arkansas costing at least $5,900 a month, a long term plan will be required to pay for these expenses as Medicare and traditional health insurance will not pay for the cost.
3. Don’t Transfer all assets to children or other relatives
This often results in long periods of ineligibility when Medicaid is applied for, unintended tax consequences and exposes your assets to your loved-one’s legal problems. Learn your options before you act.
4. Do not place all your assets into joint ownership with other family members
This can results in legal issues as well as disqualification periods like the outright transfers mentioned above.
5. Don’t sell the family home to pay for the nursing home
This is hardly ever required but still widely believed. You can protect your home with ease!
6. Don’t neglect Medicaid or estate recovery
Upon death the government can sell your home to recoup money that is owed by you unless you legally and ethically plan around it.
7. Don’t do it yourself
Appoint a Power of Attorney and trusted family member to deal with your health and assets when the time comes. You can avoid the time and costs of the courts this way and save your family headaches and thousands.
8. Don’t rely on family members for the big decisions
There’s no better person to make a plan to protect your assets than you. This can be a burden when placed on family and lead to confusion and misunderstandings.
9. Don’t skip the lawyers
With Government benefits being complicated as it is, hire someone who understands the law and complications of Medicaid benefits. Find a lawyer who knows this area because small mistakes can cause big problems.
10. Don’t wait
Unless you are not concerned with the decisions made in your life due to disability or incapacity, you need to act. Take steps to protect what is yours. Laws vary from state to state on both benefits and protection of assets. This makes it imperative to learn about your options as soon as conveniently possible.