As Oklahoma City estate planning attorneys, we help people who are concerned about potential legacy erosion. There are various ways it can happen, and we will look at potential threats and the asset protection solutions here.
Small Business Asset Protection
If you own your own business, you should be concerned about asset protection, and the business structure that you use is key.
When you have a sole proprietorship, there is essentially no difference between your personal property and your business. Your personal belongings could potentially be available if the business is sued for some reason.
As a response, you can use a different business structure, and the limited liability company (LLC) is an option that is widely embraced. Simply put, that gives you a layer of separation between your business and your personal life. If the business is sued by a creditor or another type of litigant, generally speaking, your personal property would be protected. This asset protection works in the reverse direction as well.
There are a couple of exceptions to the rule. If you personally and directly cause harm to someone else while you are on the job, you could be held liable. And you would be on the hook if you personally guarantee a loan that is used for business purposes.
A lot of people do not like the idea of veering away from a sole proprietorship because they like the tax structure. You can include business profits and losses on your personal income tax returns. This is called pass-through taxation, but it is not lost if you utilize an LLC.
Another option that is better for some people is a family limited partnership. As the name would suggest, the people in the partnership must be members of the same family. Once again, the personal property of the partners is protected if a family limited partnership is sued.
With this in mind, the partnership could own a business – for example an apartment building that is rented out for profit. You can actually have multiple family limited partnerships that hold different respective properties to provide multiple layers of asset protection.
Nursing Home Asset Protection
The majority of senior citizens will need to pay long-term care eventually, and Medicare does not cover custodial care. Nursing homes and in-home caregivers are very expensive, so the impact can be devastating if you need long-term care for an extended period of time.
Plus, a married couple may be looking at two different sets of nursing home expenses. Fortunately, there is a solution in the form of Medicaid coverage. There is also a Medicaid waiver that will pay for a professional in-home caregiver.
This is a need-based program, so you can’t qualify if you have more than $2,000 in countable assets in your name. You can transfer assets out of your personal possession, but there is a five-year look back. Ridding yourself of your assets must be completed at least five years before you submit your application.
Many people need the income that is generated by assets that they have invested. As a result, they cannot give away their nest eggs long before they need living assistance.
If this describes your situation, you can transfer income producing assets into an irrevocable trust. You would still be able to accept distributions of the trust’s earnings until and unless you apply for Medicaid coverage. Assets in the irrevocable trust would not count if you do seek eligibility as long as the trust was funded at least 60 months before you submit your application.
Attend a Free Learning Event!
We host events on an ongoing basis that cover asset protection and other important topics. There is no charge, so this is a great opportunity.
You can learn more and register by clicking here..
Need Help Now?
If you’re on the fence about working with an attorney you are unfamiliar with, you may want to cruise over to our testimonials page. These reviews should inspire confidence, and if you decide to move forward, we are here to help.
Call our Oklahoma City estate planning office at 405-843-6100 or Tulsa office at 918-615-2700 to learn how we may best serve you. Or use our contact form if you would rather send us a message.
Since founding Parman & Easterday in 1985, Larry has led over 1,000 free, community-service education programs and helped more than 10,000 Oklahoma families go from putting off their estate plan to getting it done. His goal for every client is the same: to become the person their family calls "the one who took care of everything."
Larry is the author of three books: The Straight Shooter's Guide to Estate Planning; Estate Planning Basics; and Guiding Those Left Behind in Oklahoma. He served as Oklahoma's Secretary of State and Secretary of Commerce, and his firm is the only member of the American Academy of Estate Planning Attorneys in the state.
- Can You Use AI to Plan Your Estate? - October 13, 2026
- Choosing the Right Successor Trustee: Key Considerations - October 8, 2026
- Aging in Place: A Medicaid Waiver Can Fill the Gap - October 6, 2026
