Invisible assets, commonly referred to as intangible assets, are resources that cannot be seen or touched but still provide value to the holder. Examples of invisible assets include brand recognition and intellectual property, such as trademarks, copyrights, or patents.
If a creditor files a lawsuit against you and wins a judgment, they can seize quite a few assets. They can garnish your wages, levy your bank account, and even go after your personal property. This includes everything from cars and furniture to clothing and household goods.
An asset protection trust (APT) is a complex financial planning tool designed to protect your assets from creditors. APTs offer the strongest protection you can find from creditors, lawsuits, or judgments against your estate. These vehicles are structured as either "domestic" or "foreign" asset protection trusts.
By setting up an irrevocable trust and transferring into it any assets in excess of the Medicaid financial limits, you can effectively shield those assets from the program's fines and other penalties. One issue here is that assets cannot be transferred back out of the trust, so you have lost control of them forever.
To keep your assets secure, you need to ensure you set up the right internal controls to safeguard your assets. Internal controls are processes organizations set up to protect your business against financial or technological risks.
Asset management systems, barcode or RFID tagging, and mobile applications enable efficient tracking and management of assets, reducing manual errors and ensuring data integrity. Automated depreciation calculations and integration with financial systems simplify financial reporting and compliance.
An intangible asset is a non-monetary asset that has no physical nature. It cannot be touched or felt.
Equities are generally considered the riskiest class of assets. Dividends aside, they offer no guarantees, and investors' money is subject to the successes and failures of private businesses in a fiercely competitive marketplace. Equity investing involves buying stock in a private company or group of companies.
Illegal assets means assets related to serious crimes including specific crimes and drug related crimes (criminal proceeds, property derived from criminal proceeds and any other property in which either one of the above properties is indistinguishably mixed with other kinds of property).
Finally, the IRS cannot seize any asset that has no equitable value out of spite. If a car or home, for instance, has no value and cannot be sold at auction, it must be left in your possession. Assets that do not have value that can be sold for cash must be excluded from being seized by the IRS.
Another way to avoid having one's accounts frozen is to place the account in a revocable trust. This allows the original account holder to retain control of the account during his/her lifetime, but upon that individual's death or incapacitation, will give the named successor trustee access to the funds.
Duty to preserve and protect trust assets: Trustees are responsible for safeguarding the trust assets and ensuring their proper management. They must exercise due diligence in maintaining the assets, protecting them from loss and taking appropriate steps to preserve their value.
Select your Asset Number from the table. On the new screen, select Block. The Asset <Asset number> blocked notification displays. The lock indicator is set.
If your spouse is caught hiding assets, they may face penalties, fines, or even jail time, depending on the jurisdiction and the specific circumstances. Impact on property division and alimony awards: Hiding assets can significantly impact property division and spousal support awards.
No one “takes” assets from the patient; the nursing home simply requires payment for its services if the patient intends to reside in the nursing home.
Does Medicaid Monitor Your Bank Account? Yes, if you're submitting a Medicaid application, the agency you're sending it to can check your bank account. This makes sense given Medicaid is a need-based program with financial eligibility requirements so they need to verify your assets.
Once assets are placed in an irrevocable trust, you no longer have control over them, and they won't be included in your Medicaid eligibility determination after five years. It's important to plan well in advance, as the 5-year look-back rule still applies.