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Ten Asset Protection Mistakes
By Michelle Beneski, Esq.
Here are ten of the most common asset protection mistakes people make.
Mistake #1
Relying only on a Will or a Living Trust. A Will takes effect only at your death and a Living Trust will not protect your assets from the government and nursing homes.
Mistake #2
Relying on Medicare or Health Insurance. Neither Medicare nor health insurance pays for the cost of long term care in a nursing home. With the average cost in Massachusetts of approximately $8,000/month without a Plan, most families will quickly run through their life savings.
Mistake #3
Transferring all assets to children. This almost always creates a five year period of ineligibility for Medicaid. The tax consequences can be devastating.
Mistake #4
Placing all assets into joint ownership with another family member. This also creates a five year period of ineligibility for Medicaid and can create unfortunate legal problems for families.
Mistake #5
Selling the family home to pay for nursing home care. This is almost never required. Yet many still believe that a person must sell his home to pay the nursing home.
Mistake #6
Not taking Medicaid estate recovery seriously. The government can and does sell your home after your death to recoup benefits paid out on your behalf.
Mistake #7
Applying for a guardianship. This court-supervised method of dealing with a person’s incapacity is time-consuming, costly, burdensome and restrictive. With proper planning, you avoid the need to go to court.
Mistake #8
Relying on family members to “do the right thing” when critical health care and financial decisions need to be made. In the absence of a Plan to protect assets and other planning documents, this is an awful burden to place on your family members.
Mistake #9
Not seeking the advice of a specialist in elder law and asset protection planning. Medicaid and other government benefits programs are a highly complex area of the law which varies from state to state. Very few attorneys and advisors know and understand the laws and rules that apply.
Mistake #10
Doing nothing. Unless you have no assets to protect or you are unconcerned about how decisions will be made in the event of your disability or incapacity, you should take steps now to protect yourself.
Because at Surprenant & Beneski, we strive to go above and beyond for our clients, I am going to give you two bonus mistakes.
Mistake #11
Trying to prepare your estate plan yourself. The laws are too complex. You are likely to find out that your assets are not protected when a problem arises and it is to late to fix.
Mistake #12
Creating your Estate Plan and then forgetting about it. You life will change and your estate plan should be reviewed at least every three years to ensure that it will work when you need it.
At Surprenant & Beneski, P.C., we see our role as much more than mere document preparers. We desire a long term relationship with you to make sure the plan you put in place today works in the way you intended twenty years from now. We are here to assist you and your family now and in times of crisis. We want to be your personal family lawyer. We see the documents as only one part of the comprehensive counseling we do for families. We want to assist you to make the best possible decisions for yourself and your family.
Michelle Beneski, Esq.
Michelle D. Beneski, Esq. is a partner in the Surprenant & Beneski, P.C. located in New Bedford, Massachusetts. The firm concentrates on Elder Law and Estate Planning Issues.
She is a frequent speaker and author on estate planning topics.
Michelle is a graduate of Pepperdine University School of Law, Cum Laude and holds L.L.M. in Taxation from the University of Florida, College of Law. She is a member of the National Academy of Elder Law Attorneys, Wealth Counsel and the Bristol County Estate Planning Council.
We meet with our clients for Free every three years to ensure the documents still work for them. Surprenant & Beneski, P.C. charges $500 for an initial estate planning consultation. However, this consultation fee will be waived if you reference this article. For your appointment please call 508-994-5200 or call for our Free Report “25 Ways You Can Mess Up Your Estate Plan”.
Feel free to contact Michelle at 508-994-5200 or visit www.nbelderlaw.com.
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