Legal: Plan to Protect Your Assets

By Eric Meadow, Esq., The Meadow Law Group

In my practice, I'm often asked for advice on how to protect or preserve assets.  The primary challenge with this inquiry is its timing.  People often wait until they are facing an actual or potential loss, either through law suit or other claim.  There is very little which can be legally and effectively accomplished once the asset has been lost or you are on notice as to a law suit or claim against your assets unless they have already been properly protected from reach of others.  In this article, I will lay out some of the basic forms of asset protection which is available to those seeking to protect what they've acquired over the years.  This article touches on the two most basic; in fact there are many other forms of more complicated manners which generally require the advice and assistance of a lawyer. 

• Insurance- Although often required by law or by a creditor, insurance is a very effective asset protection tool.   Insurance can be purchased to protect specific assets or assets generally.  It can protect assets in the event something happens to the asset or in the event an insured under the policy acts in a manner which puts your assets in jeopardy of loss.   It is contractual, provides very little limitation on your ability to use and enjoy the asset, and is relatively inexpensive.  However, not all insurance is created equal.  Rarely does cheaper ever mean better and insurance is no exception.   My advice to is make sure the quality of your insurance matches your desire to protect the quality of your assets.  The downside to insurance is that you are relying on the good faith of the insurance company to protect your assets under an insurable event.  You must fully understand those events and the exceptions to coverage. 

• Qualified Retirement Accounts- Aside from the benefit associated with taxes, your 401k/IRA or other qualified plan offers substantial asset protection from creditors.  As a way to encourage people to save for retirement, the Government has by statute made the money in these accounts unreachable from creditors in the event of bankruptcy, car accidents, contract disputes, and multiple other circumstances when you might face liability to a creditor.  However, while the assets in these accounts are protected, there are pretty restrictive rules about an individual's ability to reach these assets personally before they qualify for retirement distributions.   Again, the Government's way to encourage retirement planning.

After you have reviewed your insurance portfolio and opportunity to utilize qualified retirement accounts, and still feel vulnerable to potential claims or loss, you may choose to consider trusts, limited liability companies, family limited partnerships, re-classifying property ownership, and annuities.  For any of these strategies, you should seek qualified legal counsel.

Protecting Our Senior Citizens from Abuse

By Eric Meadow, Esq, The Meadow Law Group

As our As our population ages, Elder abuse is becoming a more prevalent problem in our communities.   Elder Abuse is a term referring to any knowing, intentional, or negligent act by a caregiver or any other person that causes harm or serious risk of harm to a vulnerable adult.  This may come in many forms, including:
 • physical abuse- including failing to provide treatment, give medication, and/or nourish
 • financial abuse/exploitation- including misappropriation of money and property
 • neglect- including abandonment for limited or extended periods of time

 Elder abuse in many respects resembles child abuse and carries with it the same serious consequences.  Like children, our seniors often rely heavily on the care of someone they know and trust to ensure their health, safety, and welfare are secured.  It can often be difficult to identify this abuse because it will occur privately and/or confidentially related to financial affairs.  According to recent studies, a shocking 84 percent of elder abuse goes unreported.  Unfortunately, it often occurs between family members, including spouses.   It can have a dramatic effect of the health and quality of life.  Further, in cases where a person's finances, testamentary plans or investments are exploited, the victimization extends past the individual being abused.  I've seen situations where multiple generations of a family have been torn apart by the actions of an individual placed in a position of trust.
 Both criminal and civil laws exist prohibiting elder abuse.  The penalties can be severe.  In some cases, a person may be in violation without being aware.  Thus, while it takes a village to raise our children, the same should be said for caring for our seniors.  There are  some folks who must report suspected abuse or neglect of an elder. California law mandates that doctors, nurses, social workers, police, firefighters and other emergency responders, elder outreach workers, directors of home health agencies, and certain other workers report elder abuse. If any of these mandated reporters knows of elder abuse and doesn't report it, that person can be fined and possibly held criminally responsible.
 A mandated reporter must report the abuse right away, and must file a written report within 48 hours. Whether mandated or not, potential reporters are encouraged to call Adult Protective Services for a consultation if they are unsure whether an elder's situation that they have encountered is something that should be looked into further.  Individuals who don't fit into the mandated reporter category are also encouraged to report situations that don't "appear quite right" if they suspect elder abuse or neglect.  Individuals can do this anonymously.