Desert Law Group | Elder Law Blog | Estate Planning Blog

Trusts and Divorce – Are My Assets Protected?

support — Thu, 07 Feb 2013 21:15:32 +0000

As this recent article in Forbes points out, trusts are quickly gaining ground as a popular estate-planning tool. They are attractive to many because they can be molded to serve a variety of purposes. One such purpose may be shielding assets in the event of divorce.

Prior to a marriage, any assets placed in a trust are typically treated as separate property. This means that before marriage, both partners should carefully consider the extent of their assets and whether they want to protect those assets from the possibility of divorce. Setting up a trust is a good way to protect such assets because they are simple to establish and do not require the consent of your partner like a prenuptial agreement would.

Single business owners should consider setting up a Domestic or Foreign Asset Protection Trust. Such a trust would be able to hold the ownership of your company. Then, should you get married then divorced, your former spouse wouldn’t take any ownership in your company because legally it is owned by the trust.

It also may be a good idea to set up a trust after you get divorced. A well-constructed trust may allow you to protect your post-divorce assets from the lawsuits and creditors of your former spouse. Many do not realize that, after you are divorced, you may still be financially vulnerable based on the actions of your spouse.

The post Trusts and Divorce – Are My Assets Protected? appeared first on Desert Law Group | Kimberly T. Lee.

Forced Divorce for Seniors?

support — Tue, 02 Dec 2008 00:38:00 +0000

Growing old alone can be tough, but it might be what many of our parents and grandparents will be forced to do in order to protect their assets and still qualify for Medicare. In her article Caring for Aging Loved Ones Can Be a Catch-22, journalist Gail Sheehy describes how she learned the hard way about Medicaid’s “policy of pauperization” when she supported her husband during his long battle with throat cancer.

“If the couple first exhausts all their remaining assets, then Medicaid will cover nursing care. And if Sheehy, in her late 60s, wasn’t willing to give up all her assets and income?
‘Then, you need to divorce him,’ the geriatric care manager told her.”

It seems that at a time when couples most need the health, security, and emotional support that come from a loving spouse, they learn that they may not be able to afford to be married!

But the difficulties don’t end there. The U.S. News & World Report article above shows that a “policy of pauperization” is only part of what’s wrong with our long-term healthcare system. Poorly trained caregivers, piecemeal medical treatment—these and more are what await you if you’re a middle-class aging American.

So when you’re investigating how to protect your assets and your future with an estate plan, be sure to find out how you can achieve the same goals in the event that you need long-term care as well.

The post Forced Divorce for Seniors? appeared first on Desert Law Group | Kimberly T. Lee.