Cherry Hill Asset Protection Lawyer
Our Cherry Hill Estate Planning Attorneys Help Clients Manage Wealth and Preserve Assets
At Scott Counsel, P.C., our Cherry Hill asset protection lawyer is standing by, ready to work with you and your family to create a plan that manages wealth and protects assets. Long term care costs are extraordinarily expensive—proper planning can help you preserve your life savings. If you have any questions about wealth management or asset protection, we are here as a resource. Give us a call at (856) 925-7281 or reach out to us online for your strictly confidential estate planning consultation.
An Estate Plan Should Protect Your Family’s Assets
A key part of the estate planning process is focused on protecting assets. One of the primary threats to your life savings comes from long-term care costs. The cost of long-term care in South Jersey is extraordinarily high. According to data provided by Genworth, the average monthly cost of a private room in a nursing home in New Jersey is more than $11,000. In other words, it is more than $100,000 per year to move a vulnerable loved one into a nursing home.
With narrow exceptions for short-term care, Medicare does not cover nursing home costs and other types of long-term care expenses. Instead, these costs are largely covered through the federal Medicaid program. Here is the issue: Medicaid is strictly means-tested. Without a proper estate plan in place, Medicaid may require you or your loved one to “spend down” your assets or to “pay them back” to cover long-term care costs. Our Cherry Hill, NJ asset protection lawyers can help.
How to Protect Your Assets from Long Term Costs (Medicaid Planning)
Thinking about the possibility of future long-term care costs can be stressful and overwhelming. The good news is that there are estate planning strategies that you and your family can put into place today to ensure that you are in the best position. Here are three potential ways to protect your assets from Medicaid:
- Asset Protection Trust: You or your loved one may want to consider setting up an asset protection trust in order to qualify for Medicaid benefits. As the name implies, these types of trusts are designed to help people preserve their hard-earned assets against major threats—including the potential need for nursing home care or other long-term care services.
- Qualified Income Trusts (QITs): Also known as a ‘Miller Trust’, a Qualified Income Trust (QIT) can be one of the most effective long-term care planning tools. These are a type of irrevocable trust that can hold a person’s excess income. Funds can be used for certain expenses. When used properly, QITs allow people to preserve assets while also qualifying for Medicaid long-term care benefits.
- Spousal Transfers: If you are married, you have additional options available to help protect and preserve your assets from the risk of long-term care costs. In some cases, you may be able to transfer money, property, or other assets to a spouse. To find out more about whether or not a spousal transfer (or a spousal refusal) is a viable option in your case, please reach out to an experienced Cherry Hill, NJ estate planning lawyer for immediate assistance.
There is no one right strategy to approach long-term care planning in New Jersey. The best way to protect and preserve your family’s hard-earned assets will depend entirely on your specific situation. An experienced Cherry Hill asset protection lawyer can help you craft an effective plan.
Why You Need to Be Proactive: Understanding the Medicaid “Lookback” Period
When it comes to asset protection, you need to be proactive. Setting up a last second trust or making a last second transfer of assets will likely not be effective to achieve your goals. The core issue is that there is a Medicaid “lookback” period. Once an application is filed for Medicaid long-term care benefits in New Jersey, the government can effectively review your last five years of transactions. All financial transactions made by the applicant during the lookback period are subject to review.
The law states that Medicaid applicants cannot transfer or give away assets at a value below their fair market price in order to qualify for benefits. If a transfer is made during the Medicaid lookback period, it could result in a financial penalty. As the Medicaid lookback period is strictly limited to 60 months in New Jersey, the government cannot review transactions that occurred prior to that. Protect your family’s wealth by putting a plan in place well before any long-term care need arises.
You Can Rely On the Cherry Hill Asset Protection Attorneys at Scott Counsel
Asset preservation is complicated. At Scott Counsel, P.C., we help people and families put the plan in place to manage wealth and preserve their hard-earned life savings. When you reach out to our law office, you will have a chance to speak to a New Jersey asset protection lawyer who can:
- Conduct a comprehensive, confidential review of your case;
- Answer any questions you have about long-term care plan;
- Gather all documents and financial records; and
- Help you put the best estate plan in place to protect and preserve your assets.
When done properly, Medicaid planning can help families save a significant amount of money from long-term care costs. We encourage you to hear what our clients have to say and to reach out to our Cherry Hill asset protection attorneys directly with any specific questions.