18 - Should I Protect my Assets?

Episode Summary 

Yes, it is a good idea to protect your assets. You love your family way too much to not set up protections for today and into the future. But safeguarding your hard-earned wealth takes planning and smart decision making. We recommend that you partner with experts who will help you understand your choices—people who will help you do what’s best for you and your loved ones.  

Jeffrey Bellomo and his team can establish asset protections so that you don’t lose your wealth while you’re alive. Also, the team can advise you on strategies that largely preserve your assets and honor your wishes after you have passed. It simply makes good sense to protect what you have by putting a smart plan in place with the help of experienced experts.

Key Takeaways   

01:03 – Leaving assets unprotected can have devastating results 

Without proper planning, financial obligations to a nursing home can result in a significant loss of assets

A failure to plan for wealth protection can result in assets being mishandled after your death 

Unprotected assets can even risk the financial health of your loved ones 

03:05 – Asset protection has many benefits 

Can be arranged while you are alive or after you have passed

Safeguards your assets so that they cannot be taken from you while you’re alive  

Shields your assets from long-term care expenses

Prevents loss of financial assistance if a dependent is receiving public benefits

Preserves your assets for your loved ones after you pass

Provides built-in protection for those who receive your assets

Ensures that your assets will be handled according to your wishes 

Creates favorable tax conditions 

08:22 – Tax trusts are used less frequently today given the size of the federal estate tax limit 

The federal estate tax limit is $12.06 million/spouse or $24.12 million/couple

Tax trusts were used more frequently when the federal tax limit was lower 

In 2025, the federal estate tax limit will be reduced to about $11.6 million/couple

13:30 – Most people qualify to use an asset protection trust

Use of an asset protection trust requires assets less than the federal estate tax limit 

An asset protection trust (or grantor trust) allows you to retain some control over your assets while you’re alive

With an asset protection trust, the grantor can be the trustee  

An asset protection trust can be changed 

Asset protection trusts are subject to Pennsylvania (PA) inheritance tax

If wealth is transferred at the time of death, PA taxes from the first dollar at these state tax rates:  spouse = 0% tax; lineal descendants = 4.5%; siblings = 12%, others = 15%

20:59 – Education is key to proper planning

You can learn more by attending any of our free weekly workshops in York or Lancaster

We make it possible for you to attend a workshop from the comfort of your home

Links and Resources Mentioned

Bellomo & Associates workshops, including Medicaid: https://bellomoassociates.com/workshops/

For more information, call us at (717) 845-5390.   

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