An individual’s property and assets can be attacked in many different ways, all of which can have a serious detrimental impact on their wealth. A primary purpose of asset protection planning is to guard you from losing your wealth, as seen in the following examples.
Business liabilities can lead to attacks on your personal assets. If your business faces a problem and your personal assets are not properly shielded, you may find that both your business and personal assets can be at risk. LLCs and other business entities are typically created to separate business assets from personal assets, but a proper strategy and advanced planning are essential to make sure you have not left your personal assets open to any potential attacks.
A divorce can be a dangerous threat to your asset protection plan. Without a proper prenuptial agreement in place, you may find that your wealth is up for grabs during divorce proceedings, even if you’ve only been married to your spouse for a short time. (Celebrity divorce cases, such as Paul McCartney and Heather Mills, immediately come to mind.) There are certain strategies that can be used to protect assets from divorce, but it’s best to consult with an Ohio estate planning attorney to determine which strategy is right for you.
Medical bills that accrue due to an illness or long-term care could very easily drain your wealth. This is most true for senior citizens who are in need of nursing home care – and who mistakenly believe that Medicare and long-term care insurance will cover all of their medical bills. Asset protection trusts are often used to protect wealth from Medicaid and nursing homes, but they must be drafted a certain way by qualified elder law attorneys here in Ohio.
Being wealthy can unfortunately lead to a painted target on your back. If a person of fairly modest means caused a car accident and was found to be at fault, they most likely would not be pursued for a large sum of money. – The opposite is true for someone who possesses a large amount of wealth. Asset protection can be done before an accident happens to help shield your wealth, but this is not the case after the accident has occurred. The earlier you can plan, the better.
If you have any questions about asset protection planning and strategies to shield your wealth, or if you’d like to review your current asset protection plan, please contact our Ohio estate and asset protection lawyers at 877-653-3450 to schedule an initial consultation.