None of us can truly know what the future will hold. However, careful planning can help you make the most of each day. At Quraishi Law Firm & Wealth Management, we create customized financial plans for our clients that include a full range of risk management strategies designed to prevent financial loss due to lawsuits, disability, or the need for long-term care.
Protecting Your Assets From Lawsuits
In today’s litigious society, everyone—regardless of age or occupation—is at risk of losing their hard-earned assets in a lawsuit. For example, if you were to cause a serious car accident that exceeded the limits of your insurance coverage, the injured persons could come after your personal assets. Or, if you’re a homeowner, a person could sue after a slip and fall accident on your property, being attacked by your dog, or being injured in your backyard swimming pool.
Purchasing umbrella insurance is one common way to protect assets from the threats posed by lawsuits. Umbrella policies are generally purchased in coverage increments of $1 million and apply to liability or personal injury claims that exceed your home or auto coverage.
Creating an asset protection trust is another excellent risk management strategy. This type of irrevocable trust protects most assets from civil judgment and can help protect your estate for your children and grandchildren.
If you own a small business, risk management planning must include guarding your personal assets against business-related legal action. This may include creating a limited liability company (LLC)—which will also provide protection if you ever need to file for bankruptcy on behalf of your business.
Planning for Potential Disability
Disabilities that prevent you from working are more common than you may think. In fact, the Social Security Administration reports that more than 25% of people will be disabled for 90 days or more before they reach retirement age. This includes injuries from accidents, as well as disability related to cancer, heart attack, diabetes, or other serious illness.
To protect yourself, you need short-term and long-term disability insurance. Your employer may offer coverage, but purchasing your own policy can provide added flexibility while giving you the security of knowing you’ll have uninterrupted protection even if you need to change jobs in the future.
Preparing for Long-Term Care Expenses
No one likes to think about the possibility of needing long-term care, but about 60% of those turning 65 can expect to require a nursing home, assisted living, or in-home care at some point in their lives, according to the US Health & Human Services Department. Medicare does not cover long-term care expenses, so planning ahead is vital to ensure financial security and access to the care you need.
The median cost of a private room in a nursing home now exceeds $100,000 per year, while assisted living and in-home care expenses typically run about $50,000 per year. There are very few individuals who have the assets necessary to pay this expense out of pocket.
Long-term care insurance typically covers the cost of care for a specified time period, and some policies offer inflation protection. There are also newer hybrid options that become life insurance paid to your heirs if benefits are not used.
Depending upon your financial situation, planning for long-term care may also involve Medicaid planning. This process involves restructuring your assets to allow you to qualify for Medicaid benefits for nursing home care—often by using qualified income trusts or Miller trusts. With proper planning, you may be able to receive Medicaid benefits while protecting assets for a spouse at home or your heirs.
Let Us Help You Prepare for Whatever the Future Holds
Quraishi Law Firm & Wealth Management works with a wide range of clients, including young families, business owners, high net worth individuals, medical professionals, and retirees or soon-to-be retirees. We offer an integrated one-stop-shop that meets all your financial and legal needs—from risk management and asset protection to tax planning, estate planning, and business planning.
The Quraishi Law Firm & Wealth Management team is available at our Jonesboro and Little Rock office locations to serve clients throughout Northeast and Central Arkansas. We are also available to meet with clients in our Memphis, Tennessee office. Schedule an Initial Planning Session today to discuss how we can be of assistance.