New York Asset Protection 101

For a long time, most people saw estate planning as making a will, with no other steps required. In reality, asset protection steps help anyone who has assets; given the potential quirks of the probate process in Westchester County, it can settle a person’s mind to know that their assets can be as guarded as possible against the claims of creditors. The right attorney on your side can help you craft an appropriate plan.

Potential Pitfalls Can Affect Estate Planning

There are several points in one’s life where one’s assets are potentially vulnerable, but never more often than when one is elderly. Thankfully, there are just as many instruments one may use in order to make sure that their portfolio is protected – but not every instrument will work in every situation. The nature of a person’s assets and obligations will make a difference in finding a setup that works for them.

There are two major scenarios in which an older person may want to ensure that they have protection in place: if or when they require long-term nursing care, and when they have passed on. Without the former, their assets may be seized by Medicaid, in order to reimburse the program after their passing; without the latter, your assets may not pass as you want them to. The right asset protection tools can help a person enjoy their golden years a little more.

Revocable & Medicaid Asset Protection Trusts

One of the most valuable tools a person can have in their arsenal to protect their assets is the revocable trust. A trust removes assets from a person’s portfolio and places them in the name of the trust. Because of this, assets in a trust do not have to go through the probate process – they have already, in essence, been transferred before probate. They can simply be passed down to the trust creator’s preferred beneficiaries.

If one wants to protect assets from Medicaid, however, a specific Medicaid Asset Protection Trust (MAPT) is necessary. If it provides long-term nursing care to an individual, Medicaid has the right to recover its expenditure after the person is deceased. However, assets in a trust are usually exempt from this seizure, as is a marital home if a surviving spouse or child still resides within it. A MAPT effectively insulates its assets because they are not in the name of the deceased.

Contact A Pleasantville Asset Protection Attorney

If you are reaching a point in life where you are in need of an estate plan, you need an attorney who can evaluate your specific situation and help you craft the asset protection tools you need. A Pleasantville asset protection attorney from Meyer & Spencer, PC will work hard to assist you. Call our office today at (914) 741-2288 to schedule a consultation.

Source:

ncoa.org/article/what-is-medicaid-estate-recovery-and-how-does-it-work/