Serving Maryland & Washington, D.C.
Asset Protection
You've worked hard to build what you have. Asset protection planning puts legal structures in place — before a crisis hits — so that creditors, lawsuits, and long-term care costs can't take it all away.
Asset Protection Planning
What asset protection planning is — and isn't
Asset protection is the legal process of arranging your finances and ownership structures so that your assets are shielded from future creditors, lawsuits, and government claims — while remaining available to you and your family.
It is not hiding assets, defrauding creditors, or evading taxes. Every strategy I use is legal, transparent, and designed to hold up under scrutiny. The key is timing — asset protection planning must be done before a threat arises. Transfers made after a lawsuit is filed or a debt is incurred can be unwound by courts as fraudulent conveyances.
The best time to protect your assets is before you need to. The second best time is now.
What are you protecting against?
Most people don't think about asset protection until a threat is already on the horizon. By then, options are limited. Here are the most common threats I help clients plan against:
Long-term care costs
High riskNursing home care in Maryland averages $10,000–$12,000 per month. Without planning, a prolonged illness can wipe out a lifetime of savings before Medicaid kicks in.
Creditors & judgments
High riskA lawsuit, business debt, or personal judgment can attach to your assets — including your home — if they are not properly protected.
Divorce
CommonAssets held in certain trust structures may be protected from division in a beneficiary's divorce — a critical consideration for parents leaving inheritances to children.
Business liability
CommonBusiness owners who operate without proper entity structure risk personal liability for business debts and lawsuits.
Estate taxes
CommonLarger estates may face federal or state estate taxes. Strategic planning can reduce or eliminate the tax burden on your heirs.
Medicaid spend-down
High riskWithout planning, you may be required to spend down nearly all of your assets before qualifying for Medicaid long-term care benefits.
Strategies I use
There is no single asset protection strategy that works for everyone. The right approach depends on what you own, what you owe, what you do for a living, and what you're trying to protect. Here are the primary tools in the toolkit:
Irrevocable Trust
Strongest protectionTransferring assets into an irrevocable trust removes them from your taxable estate and places them beyond the reach of most future creditors. You give up direct control, but a trusted trustee can still benefit you and your family. Irrevocable trusts are also the primary vehicle for Medicaid planning — repositioning assets before the 5-year look-back period.
Medicaid Asset Protection Trust (MAPT)
Long-term careA MAPT is a specific type of irrevocable trust designed to protect your home and other assets from Medicaid's estate recovery program. Assets transferred into a MAPT are protected after the 5-year look-back period — meaning Medicaid cannot count them toward your eligibility limit or recover them from your estate after death. The earlier you plan, the more you protect.
Life Estate Deed
Real propertyA life estate deed transfers ownership of your home to your children (or other beneficiaries) while you retain the right to live in and use the property for the rest of your life. At your death, the property passes automatically — no probate, no Medicaid estate recovery (in most cases). The transfer starts the 5-year Medicaid look-back clock, so timing matters.
Business Entity Structuring
Business ownersOperating a business as a sole proprietor exposes your personal assets to business debts and lawsuits. Forming an LLC or corporation creates a legal separation between your personal assets and your business liabilities. Proper structuring — including an operating agreement and consistent business practices — is essential for the protection to hold up in court.
Beneficiary-Controlled Trusts
Inheritance protectionRather than leaving an inheritance outright to your children, you can leave it in a trust that gives them substantial control while protecting the assets from their creditors, divorcing spouses, and poor financial decisions. The beneficiary can often serve as their own trustee — maintaining control — while the trust structure provides a legal shield.
Important: The 5-Year Look-Back
Medicaid planning requires time
Medicaid has a 5-year look-back period for asset transfers. If you transfer assets — including into a trust or to your children — within 5 years of applying for Medicaid long-term care benefits, those transfers can trigger a penalty period during which Medicaid will not pay for your care.
This is why Medicaid planning is most effective when done early — ideally 5 or more years before you anticipate needing long-term care. If you're already approaching that window, there are still strategies available, but options narrow with time. The sooner we talk, the more we can protect.
Protect what you've worked hard to build
Creditors, lawsuits, and long-term care costs can wipe out a lifetime of savings if you're not prepared. Watch this short video to understand how asset protection planning works and why acting early makes all the difference.
Common questions
Is asset protection only for wealthy people?
Not at all. The most common asset protection need I see is protecting a family home from Medicaid estate recovery — a concern for middle-class families, not just the wealthy. Anyone who owns a home, has savings, or runs a business has something worth protecting.
Can I protect my assets after I've already been sued?
Once a lawsuit is filed or a debt is incurred, options are significantly limited. Transfers made to avoid a known creditor can be challenged as fraudulent conveyances and unwound by a court. This is why planning must happen before a threat arises — not after.
Will asset protection affect my ability to qualify for a mortgage or refinance?
Transferring your home into a revocable living trust generally does not affect your ability to refinance — most lenders are familiar with this structure. Transfers into irrevocable trusts are more complex and require lender coordination. We'll discuss the implications before any transfer.
How does asset protection interact with my estate plan?
Asset protection and estate planning are deeply connected — the same trust structures that protect your assets during your lifetime also determine how they pass at death. I design both together so your plan is cohesive, not a patchwork of documents that conflict with each other.
What's the difference between asset protection and Medicaid planning?
Medicaid planning is a subset of asset protection focused specifically on qualifying for Medicaid long-term care benefits without spending down all of your assets. Asset protection is broader — it also covers creditor protection, lawsuit shielding, business liability, and inheritance protection.
Other Practice Areas
Ready to get started?
I'll walk you through your options — no pressure, no jargon. Just a plain conversation about protecting what matters most.