Asset Protection In Ohio
There’s a myth that asset protection is only for the rich and famous. Both the wealthy and middle class can benefit from asset protection strategies. These strategies help people protect the assets they will need in retirement, as well as the property they want to pass on to their loved ones. This is especially true in the second half of life when many of us begin to see some changes in health. Because health care costs, especially long-term care-related costs, can be devastating to a family’s plans for their retirement years, elder care attorneys help middle-class families with asset protection planning to preserve and protect their nest egg, so they don’t have to worry about a health issue wiping them out financially.
While the tools and strategies are complex, our attorneys make the process a smooth and easy one for our clients. Everyone deserves the peace of mind of knowing their future is secure. This is a complicated legal process, so contact an Ohio asset protection attorney from Jarvis Law Office. We can review your situation and develop the ideal asset protection plan for you.
What is Asset Protection?
Asset protection is a crucial aspect of elder law, helping seniors secure their financial well-being during retirement. It encompasses various strategies aimed at safeguarding assets from creditors, legal judgments, and nursing home expenses. Methods for asset protection include trusts, LLCs, annuities, gifting, and other planning techniques. The team at Jarvis Law acknowledges the challenges seniors encounter in defending their hard-earned assets and is committed to offering the best possible solutions. Through our all-encompassing asset protection services, we work diligently to provide you with top-notch advice and guidance tailored to your needs.
When Should I Contact an Asset Protection Lawyer?
In asset protection, proactivity is essential. An asset protection attorney can help assess risks and develop strategies to safeguard your assets. If you have property, high-value investments, or a business, consulting with an asset protection lawyer promptly is recommended. Your asset protection attorney will offer legal guidance on structuring your investments and assets to shield them from potential creditors and lawsuits. Additionally, they’ll aid in setting up trusts or other entities to secure your wealth for future generations. Understanding the asset protection laws in your state is vital, and a skilled asset protection attorney at Jarvis Law can assist you in navigating these complexities.
Asset Protection Strategies
Our Ohio asset protection attorneys utilize various strategies to assist clients. These strategies protect our clients by:
- Preserving your life savings from the catastrophic cost of long-term care by Preventing or Reducing a Medicaid Spend Down
- Protecting your home from a Medicaid Lien
- Making sure you and your spouse have enough income and savings to last the rest of your lives
- Creating a plan for the future that ensures a seamless transition to your chosen individual(s) that is smooth and easy
- Making sure you are never a burden on your spouse or children
Important Facts About Long-Term Care Planning In Ohio
In 2022, we have seen a dramatic rise in the cost of long-term care services in Ohio and throughout the nation. The cost increases have been so significant that even individuals with long-term care policies may now need to look at additional ways to address the ever-increasing rates for home care, assisted living, and nursing home levels of care.
Most of our clients prefer to receive any assistance that they might need in their own homes. And we are very lucky in Ohio to have a program under the Medicaid umbrella of services that can assist families with the cost of that care. That is a good thing because this area has seen one of the highest cost increases due to the reduction of the labor force over the last few years. Previously the cost of one month of round-the-clock home care was approximately $16,000 per month. Our clients have been reporting to us that they have recently received service quotes in the $21,000-$24,000 per month range. With costs this high, most of the families we work with would be unable to sustain this level of care for a significant length of time.
In recent times, nursing home and assisted living center rates have also jumped significantly. A local nursing home that was previously charging $9,000 a month for care recently quoted $14,000 for that same care. Several other care centers in the area have implemented similar increases in their rates. These businesses are having trouble keeping staff and their expenses have risen due to inflation.
This has created an environment where those needing care and assistance have to use a larger amount from their savings than they had ever planned to. All of this is leading to concern that seniors won’t be able to afford the care and support services that they need.
But there is hope. Ohio seniors can access tools and strategies to make their savings last longer by working with an Ohio elder care attorney who can leverage their assets and strategize adequate safeguards for them.
Domestic Asset Protection Trusts
Ohio law allows for the use of powerful asset protection tools and strategies, including asset protection trusts. This little-used and even less understood tool is an important part of an overall strategy to protect assets from a Medicaid spend down, certain creditors, and lawsuits. These trusts became available to Ohio residents in the last few decades. An experienced asset protection attorney or elder care attorney can use this hybrid type of irrevocable trust to protect your personal assets from the all-too-real risks mentioned above. In addition, because this is a hybrid trust, you are still able to maintain control of your trust assets. You can also name your children and grandchildren as beneficiaries and include protections for them from uncertainties in their lives like divorce, bankruptcy, disability, lawsuits, and their own poor judgment. With so much flexibility, it’s easy to understand why this option is so popular with Ohio residents who want to protect their assets.
There are some caveats to keep in mind. We still have to keep an eye on the five-year lookback with Medicaid if we are hoping to utilize that option to supplement the high cost of care in the years ahead. Sometimes families come to us and they don’t have five years available until their loved one needs care. That’s okay too. These tools can be combined with other strategies to preserve a significant amount of what would otherwise be lost. The more time the elder care attorney has to work with you, the more likely they will be able to protect your assets. Also, creditors have 18 months to bring claims against the assets in the trust. Once that time passes, your assets will be protected.
Protecting Assets With Insurance
Your Ohio asset protection attorney can also advise you on purchasing umbrella insurance policies. These policies can shield you against liability, even if you’re involved in a lawsuit. You can often buy the policy you need through your homeowner’s insurance company. However, consult with your attorney to ensure it provides the asset protection you need before making a purchase.
Jointly Held Accounts
Did you know that money in jointly held accounts is at risk? For example, if you share an account with a child who gets divorced, the money could be seized. Your Ohio asset protection attorney will review your jointly-held accounts and assets, and recommend legal strategies to protect those assets.
