New York Asset Protection — Trusts, LLC Structures, and Creditor Defense
Asset protection planning structures your wealth so that legitimate creditors cannot reach it — without crossing the fraudulent conveyance line. New York doesn't permit self-settled domestic asset protection trusts, so practitioners use offshore trusts, LLC structures, tenancy by the entirety, retirement account shields (CPLR §5205), and homestead exemptions. Our attorneys design plans that hold up under scrutiny.
Asset Protection Topics
Why Asset Protection Matters
Anyone can face unexpected financial threats: a lawsuit, a business failure, a divorce, or long-term care costs. Without proper planning, your life savings could be at risk. Asset protection planning creates legal barriers between your personal assets and potential claimants.
- Protection from professional liability (doctors, lawyers, business owners)
- Shield assets from divorce proceedings
- Protect savings from long-term care and Medicaid spend-down
- Guard against business creditors and lawsuits
- Preserve wealth for the next generation
Asset Protection Strategies in New York
New York offers several legitimate asset protection tools. The right strategy depends on your specific assets, profession, family situation, and timeline.
- Medicaid Asset Protection Trust (MAPT) — protects home and savings from Medicaid
- Limited Liability Companies (LLCs) — separate business and personal liability
- Irrevocable Trusts — remove assets from your estate and creditor reach
- Tenancy by the Entirety — protects jointly owned marital property
- Retirement accounts — generally protected from creditors in New York
- Homestead exemption — limited protection for primary residence equity
Medicaid Asset Protection
For many New Yorkers, the biggest threat to their assets is the cost of long-term care. A nursing home in New York can cost $150,000–$200,000 per year. Medicaid Asset Protection Trusts, created at least 5 years before applying for Medicaid, can protect your home and savings while preserving eligibility for benefits.
Act Before a Crisis
Asset protection planning must be done proactively — before any claims arise. Transfers made to avoid existing creditors can be challenged as fraudulent conveyances under New York law. The best time to protect your assets is now, while there are no threats on the horizon.
Frequently Asked Questions
Is asset protection legal?
Yes. Asset protection planning using legitimate legal structures is entirely legal. The key is that it must be done proactively, before any claims arise. Transferring assets specifically to defraud known creditors is fraudulent and can be reversed by courts.
Can I protect my home from Medicaid in New York?
Yes, with proper planning. A Medicaid Asset Protection Trust, established at least 5 years before applying for Medicaid, can protect your home and other assets while preserving Medicaid eligibility. This is one of the most important planning tools for New York seniors.
Discuss Your Asset Protection Matter
Speak directly with Alan Vaitzman, Esq. about your situation. Free consultation, transparent flat-fee pricing where applicable.
Call (212) 413-4116 Send a message