Is It Time for an Asset Protection Trust?

Most people don’t think about protecting their assets until something bad happens, like a lawsuit, nursing home bill, or financial crisis. But by then, it might be too late. Truly, the best time to protect your assets is before you’re at risk.

That’s where an asset protection trust can come in.

These powerful legal tools can help shield your home, savings, or other important assets from future threats, but they only work if you plan ahead. In other words, if you’re already being sued, it’s too late to establish this trust. So how do you know if it’s time to consider one?

Here are some leading indicators that an asset protection trust might be right for you.

1. You’re Concerned About Long-Term Care Costs

This is the big one. Nursing home care can cost $100,000 or more per year, and it’s not covered by Medicare. Medicaid can help, but only if you meet strict income and asset rules. If you wait too long to plan, you risk losing thousands, if not hundreds of thousands of saved assets.

A properly structured asset protection trust can help preserve your assets and still allow you to qualify for Medicaid, as long as it’s set up early enough.

2. You Own Property You Want to Keep in the Family

Whether it’s the family home, a vacation cabin, or a rental property, you may want to keep real estate in the family rather than see it sold to pay off care costs or creditors. Placing property in an asset protection trust can help make that happen, while still allowing you to live in the home or otherwise use the property during your lifetime.

3. You Work in a Profession That Comes With Legal Risk

Doctors, business owners, contractors, real estate investors – these and other professions come with a higher chance of being sued. Even if you carry some form of liability insurance, lawsuits can be financially devastating.

An asset protection trust can create a legal “firewall” between your assets and potential claims, keeping what you’ve saved out of reach of future lawsuits or creditors.

4. You’re Helping Adult Children (But Want to Be Careful About It)

It’s wonderful to support your children or grandchildren…but what if they go through a divorce, bankruptcy, or lawsuit of their own? If you give them money or property outright, it may not be protected.

Asset protection trusts can also be used to leave assets to your children in a way that protects them from their own future problems, while still giving them access and benefits.

5. You Want to Preserve Your Legacy No Matter What

At the end of the day, most people set up an asset protection trust because they want peace of mind. They’ve worked hard, saved carefully, and want to make sure that effort benefits their family – not the government, creditors, or outside forces.

This type of planning isn’t just about money. It’s about keeping control, maintaining dignity, and leaving something meaningful behind.

So don’t wait for a crisis. Asset protection trusts are powerful, but they don’t work retroactively. Once a lawsuit is filed or a health crisis hits, it may be too late to take advantage of this type of planning. If any of the reasons above sound familiar – or even if you’re just curious – it’s worth having a conversation now.