Asset Protection Planning: Why It Is Crucial for Your Financial Future

By Kim Boyer

Many of our clients want to protect what they’ve worked so hard to build. You need to put a solid financial plan in place and take the proper steps to protect your assets. Through proactive asset protection planning, you can protect your home and other assets from the high costs of long-term care. With proper planning, you can enjoy your assets and ensure they are passed down to your loved ones at your death. If you or a loved one is concerned about the high costs of long-term care, now is the right time to start protecting family assets.

Who Needs Asset Protection Planning?

The more assets you have, the more assets you have to protect—so business owners and those with high net worth need to engage in appropriate estate planning and asset protection strategies. Another group where asset protection planning can make a big difference is seniors and others worried about the costs of long-term care.

To create a legal barrier between your assets and potential costs of care, a plan will usually involve transferring your home and other assets into an irrevocable trust. This strategy allows you to preserve your home and maintain financial stability throughout your lifetime, even if you face declining health, a dementia diagnosis, or another unexpected crisis. This type of asset protection planning can bring you peace of mind. It can secure the wealth you’ve built and allow you to pass your legacy on to your loved ones.

Why Is Asset Protection Planning Important?

The average cost of long-term care in Nevada is now approaching $10,000.00 per month, putting at risk the wealth you’ve spent a lifetime building. Even a substantial nest egg can quickly be drained by the cost of a nursing home, leaving little to pass on to your loved ones. By creating and funding an asset protection trust, you can be eligible for Medicaid if the need arises, without having to “spend down” your assets. This strategy works best when you start early, so that the ineligibility period passes. This way, Medicaid benefits will pay for the costs of a nursing home and some assisted living facilities or group homes, allowing you to maintain care without sacrificing your legacy. You will also get the peace of mind that your assets will be used in accordance with your wishes, even if you can no longer manage them yourself.

Asset Protection Tools We Use

One of the most common strategies for protecting assets is through the creation of an irrevocable asset protection trust. The irrevocable trust can hold your home, bank accounts, and investments. Although you cannot have access to the principal of the trust, you can retain the right to receive the income (dividends and interest). If you place your home into the trust, you can continue livingthere. Also, you can avoid Medicaid estate recovery.

Timing is Critical

Asset protection planning is only effective when done well in advance of a medical emergency or health crisis. When you apply for Medicaid, Medicaid looks back five years to see if there were any transfers. If there were any transfers in the last five years, an ineligibility period is imposed. You will then need to pay for the cost of long-term care.

However, if you have properly transferred assets to an irrevocable trust at least five years before applying for Medicaid, the transfer will not impact your Medicaid eligibility. This is why early planning is critical.

What are the Drawbacks?

You have to be ready to let go of control. You will need to name someone other than yourself to be the trustee of the trust.

You have to be ready not to have access to the principal. For your home, you can still live in it, and if you decide to move and purchase another home, the trust can buy a replacement residence. Because of this, many people do feel comfortable putting their homes into this type of trust.

You should understand that this strategy assumes a person could rely on Medicaid to pay for long-term care, which limits care choices. In Nevada, many assisted living facilities are not part of the Medicaid program and are private pay only.

You should understand that asset protection is complex and highly specialized, and this expertise costs more than general estate planning. But if this type of planning is right for your family, it can provide peace of mind and preserve your legacy.

Ready to Start Asset Protection Planning?

If you are ready to begin protecting your assets, work with an experienced and knowledgeable attorney at Boyer Law Group. Our team has over twenty-five years of experience working with Nevada Medicaid and families in Nevada.

Disclaimer:Information provided as a service of Kim Boyer, Certified Elder Law Attorney, updated as of 11/11/25. It does not constitute legal advice. For specific questions you should consult a qualified attorney.