By Kimberly A. Paton, Esq.

sset Preservation can seem intimidating at first, however when breaking it down into bite-sized pieces it can be easily complished and with minimal effort.  Here are some tips to help get you started

The most important, yet easily overlooked, way to protect your assets is to be proactive about your health and live a healthy lifestyle. The saying “A Stitch in Time Saves Nine” rings true here – be proactive do not wait. Take care of any issues, whether they be medical, financial, personal, etc., as soon as they arise.

Regularly review and pay your insurance policies on time.  Know exactly what types of insurance policies you have, what they cover, and when payment is due, e.g. Medicare, Supplement, Advantage programs, Medical, Life, Long Term Care, Car, Home, Umbrella Policies, etc. Life circumstances change over time, review policies regularly to ensure that you are not over-insured or under-insured. Pay your insurance policies on time, a lapse in coverage can become costly if something happens during that timeframe. On the same note, when switching policies and/or companies coordinate carefully prior to termination to avoid any lapse in coverage.

Know your finances and meet with your financial planner regularly. This will give you a snapshot of money coming in vs. money going out, allowing you to make necessary lifestyle adjustments and plan. Know the sources of other funds. These may include Medicare/Medicare Advantage Programs, Medicare Supplement(s), Medicaid, VA Benefits – Aid and Attendance, VA Hospital and Long Term Care Facility, Private Insurance, Long Term Care insurance, and Private Funds.

Review Title of Assets.  If your accounts are joint or Pay on Death (POD) the co-owner or beneficiary receives the account regardless of the Will. Make any corrections ASAP.

Do not assume anything. Be very clear about money you are gifting and/or loaning to family members or friends, and make sure that it is in writing and dated to avoid fighting.

Update legal Estate Planning documents to avoid family discord and fighting. Are your documents updated so assets are being distributed according to your wishes? Write down clearly your expectations and instructions. Review beneficiaries on bank accounts, life insurance, etc. and make necessary changes. Do not sign any legal documents you are unsure of without speaking to an attorney, unfortunately not everyone has your best interest in mind. Family discord can lead to very expense litigation.

Our world has changed dramatically. In today’s age you need updated, legally valid, and enforceable documents to avoid fighting over your assets. These documents include:

• The purpose of a Will is to name a person to handle your Estate, specify your beneficiaries and provide Trusts, if applicable, for tax saving purposes, minors, special needs person, spendthrifts, or to protect your assets from third party creditors.
• Living Will. This expresses your end of life decisions (do you want to be kept on life support, feeding tube, etc.) and names a person you trust to enforce those decisions on your behalf.
• Power of Attorney. This is the most important document to protect you. It appoints somebody you have the utmost faith in to take care of you and your assets if you cannot.
• Irrevocable Trust for Asset Preservation. Protects assets from Estate taxes and from Medicaid, VA, creditors, and judgments. Keep in mind look back periods apply.
• Revocable Trusts. To avoid probate, however there is no tax or asset protection.
• Pre-Nuptials. Protects assets in the event of a divorce