Asset protection is an area of the law designed to deal with the protection of your assets against future creditors. Asset protection planning is designed to avoid having to pay creditors or existing loan obligations. Asset protection law is structured around the fact that whatever you own, your creditors can come after if you do not take the important steps to protect those assets.
What is Asset Protection?
- Asset protection is designed to protect one’s wealth from taxation, seizure, and other losses.
- Asset protection will insulate assets legally without common illegal practices designed to hide assets, dealing with tax evasion or bankruptcy.
- Jointly-held property under tenant coverage will work as a form of asset protection.
Unfortunately, many people are unclear about asset protection planning and often confuse it with estate planning. Asset protection rules are drastically different from estate taxes and planning. With Asset protection, the rules are less restrictive as individuals can have control of assets including management of those assets and designating the beneficiaries. Long term care costs do require planning and understanding the impact of Medicaid laws. Medicaid is a federally funded program designed to provide benefits for individuals under a certain income threshold. Veterans’ benefits are similarly designed.
If you need assistance with asset protection, contact our estate planning attorneys in Ogden, Utah today.