What is Asset Protection Planning?
Asset protection planning involves protecting yourself, your business, and your hard-earned assets from loss due to lawsuits, creditors or bankruptcies. This type of legal planning is especially important for professionals and business owners whose personal assets could be at risk due the nature of their work. But asset protection can also be quite effective for regular folks as well.
Why Asset Protection?
These days, anyone can get sued. Lawsuits can result from car accidents, credit card debt, bank foreclosures, unhappy customers, and many other things. If someone wins a judgment against you, you or your family could be financially devastated or even go bankrupt trying to pay it off.
In addition, families or individuals concerned about the high cost of long-term medical care and may wish to protect assets in the event that a family member needs to qualify for governmental assistance (such as Medicaid) in the future. With the proper advance planning, a family may be able to preserve significant assets for future generations, protect those assets from a future estate recovery claim by the State, and still qualify a loved one for Medicaid benefits when it is needed.