There are two main strategies that engage in asset protection.
First, we use proactive, pre-planning strategies. This could include actions such as the establishment of a Irrevocable Trust, which cannot be changed or canceled after its signing. Another pre-planning strategy could be transferring ownership of assets, such as your home, to a trusted person that will protect that asset for you.
Second, we use crisis planning strategies. This can take shape in many different ways. One of those being Spousal Refusal, meaning that your legally responsible spouse can refuse to make his or her assets available to pay for your care.
There are other ways that we can reduce your assets in a way that is beneficial to you, without making them available to the government or jeopardizing your Medicaid eligibility. A prepaid funeral or paying off debts are two ways that you can ease the potential strain on family members and reduce assets. Additionally, you can make home improvements, decreasing your available funds and adding value to your home.