Weiss, Tom & Trapanese Address 502 Valley Road, Suite 104, Wayne, NJ 07470 Weiss, Tom & Trapanese Phone 973-694-5511
NJ Attorneys: Law Offices of Weiss, Tom & Trapanese, LLC

Asset Preservation Planning

What does Asset Preservation Mean

Often our clients ask us about asset preservation planning. This typically comes up in the context of either estate tax planning or Medicaid planning.

Asset preservation planning requires the individual to consult with experienced professionals concerning their needs. This may include your accountant, financial planner and an experienced elder law attorney. The team will work with you on formulating a plan for the transfer of resources. The attorneys in our firm are here to help.


Assuming that you begin to make changes to your assets, by transferring those cash assets to family members and re-allocating assets, you need to know the ramifications of those actions. Any action taken depending on the amount of the transfer has a potential consequence. The question becomes whether the risk taken is worth it. That all depends on your own comfort level with transferring assets out of your name and into the name of another individual, a trust or another entity.

Medicaid Planning

In the Medicaid context, timing is everything. Any transfer made outside of the sixty months (5 year) look back period creates no penalty for the Medicaid applicant. In other words, the quicker you start disposing of assets, the easier it is to shield the assets from Medicaid if nursing home care is needed in the future. On the other hand, any transfers without full consideration made within five years of applying for Medicaid will subject the Medicaid applicant to a “penalty”, resulting in the denial of benefits for a finite time period.

Tax Planning

For tax planning, switching assets into the name a trust or a corporation, may create long term tax savings for the estate, especially if the asset transferred grows substantially inside the trust or the legal entity. The trust or corporate entity could allow the gifting of assets inside the business to others thus minimizing assets. In addition, your estate may also be able to save taxes on a corporate entity by taking significant discounts on the individual's interest in the corporation as a result of the minority ownership interest.

Disclaimer: The materials on this website are intended for general informational purposes only. These materials do not, and are not intended to, constitute legal advice. Visitors to this website should consult with competent legal counsel. This webpage is not intended to, and does not create, an attorney client relationship with Weiss, Tom & Trapanese, LLC or any of the firm's lawyers. This website is not intended as an offer to represent you.

Contact an Experienced Asset Preservation Planner

Our attorneys will help you formulate a plan that takes into account your needs.

Law Offices of Weiss Tom and Trapanese, LLC

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