What Are the Benefits of a Health Care Savings Account?

 

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What are the benefits of a health care savings account? Well this question is probably better asked to your human resources person where you are employed. It’s an alternative to providing health insurance or can be a blended arrangement whereby your employer puts a certain amount of money into your account every month. Therefore, you can use that money for any health care needs you want.

 

After a certain amount, which is usually a fairly high deductible, then your health insurance would kick in as far as that’s concerned.  But you can use this for dental or prescription drugs, anything you’d like as far as your discretionary.

 

It’s particularly beneficial to people who are very healthy and don’t go to see the doctor very often, other than an occasional physical and don’t get sick, because the money builds up in that account. And so you can use it for cosmetic surgery or dental work or whatever you would like. It’s not particularly beneficial to people who have prescription drugs that are particularly expensive; usually the money that’s deposited isn’t sufficient to cover the amount that the employee has to pay.

 

So it’s something that your employer does for you or to you in conjunction with providing health insurance for you. So you probably don’t need to call and talk to me about this but that’s my take on a health care savings account. You probably need to talk to the human resources department where you are employed and ask them to give you more information about it. And it’s an alternative to your medical insurance or deductible.

 

So good luck with that! You can always call me about your legal needs.  It’s 727-847-2288.

 

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Asset Protection Video Index

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What Do I Need to Know About Asset Protection?

 

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Good afternoon.  My name is Tom Mitchell.  I’m a partner with the law firm of Waller & Mitchell.  We’re located at 5332 Main Street in Downtown New Port Richey.  I’m an elder law specialist.  That means that I do wills, trusts, powers of attorney, living wills, healthcare surrogate documents, trust and estate administrations, public benefits qualifications, and guardianship work.

Okay.  All you 50 and 60-year-olds out there, how are your 70 to 90-year-old parents doing?  Are you concerned that they’re going to have enough money to last the rest of their lives?  Are they concerned that they’ll have enough money to last ‘til the end of their lives, and that there’ll be something left to give to you when they die?

If so, you need to consider consulting with us about asset protection.  There are a number of federal and state programs that provide assistance to seniors who need help.  These are generally means-tested program, which mean that you can’t have more than a certain amount of assets or a certain income level.

At Waller & Mitchell, we know how to get you qualified for those programs.  And in some instances, we can accelerate that eligibility by legally transferring the money from the older generation to the younger generation, without incurring a penalty.

So if you’re interested in trying to help your parents live a better life and insuring that their goal of leaving something to their children and grandchildren is accomplished, please give me a call at Waller & Mitchell.  The number is 727-847-2288.

 

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How Do I Protect My Assets From Lawsuits?

 

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How do I protect my assets from lawsuits?  Well, your biggest exposure for liability and being sued is with your automobile.  So whatever automobile you drive, you should be shown as the owner, and don’t hold the title in your joint names because the automobile is a dangerous instrumentality, and if it’s involved in an automobile accident, the owner or owners as well as the operator or driver of the vehicle who caused the accident has liability.  So if you have more than one automobile in your family, have each spouse put the automobile which they drive in their name so that they’re the owner and operator, and that way if either of you are involved in an accident, well, then they can only sue one spouse.

 

I also suggest that you talk to your insurance agent about getting what they call an umbrella policy.  Umbrella policy offers you protection for liability that exceeds your insurance limits.  Hopefully you have $100,000.00 limits, and if you’re concerned about exposure over $100,000.00, you can get what they call a $1 million umbrella, or $2 million, and that way the umbrella policy covers any damages above the $100,000.00 limit.  So depending on how much security you want is how much you should cover as far as a liability policy.  And it covers not only liability for automobile accidents, but anything you would be sued upon, or most things you would be sued upon.

 

Be sure to include that as uninsured or underinsured motorist coverage.  In these recessionary times, you have any number of people out there driving, and they may not have any insurance.  And if they cause an accident and you’re injured, well, you don’t have anyone to turn to, and if you don’t have underinsured motorist, well, then you don’t have anyone to recover your damages from, whereas if you do have underinsured motorist on an umbrella policy, well, you’re covered for the extent of your insurance coverage.

 

As far as a title to your assets, I suggest that you place them if you’re married in your name as husband and wife for tenancy by the entirety, and that way, if there is a judgment as a result of an automobile accident, they cannot reach any of your assets that you have titled as husband and wife or tenancy by the entireties.

 

So if you want to do some asset protection and discuss your estate plan, well, give me a call at 727-847-2288.

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How Do I Protect My Assets From Creditors?

 

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How do I protect my assets from my creditors?  Well, the first thing you need to do, particularly if you’re married, is to have the credit in just one spouse’s name, and that way, if there’s any credit problems, they can’t attach the assets that are held jointly as husband and wife.  So you need to title your assets as husband and wife, and that includes your bank account.  So whenever you go to the bank, the next time you go to the bank, if you’re married, be sure that you talk to your bank representative.  Ask them to pull your signature card, and be sure that the card provides that you are – you hold the account as tenancy by the entireties or you have it as husband and wife rather than as joint tenants with right of survivorship.

 

If the account is held as joint tenants with right of survivorship, that means that both of you have a one-half interest in the account, whereas if you hold it as husband and wife or tenancy by the entireties, you do not have a half-interest in the account or the property; you have an undivided interest in the whole.  So it’s important that you have the accounts or your assets held as husband and wife and therefore any creditor who is against only one spouse cannot attach the assets that are held as husband and wife or held up by tenancy by the entireties.

 

You say, “Well, I don’t have the luxury of being married,” or, “if I’m married I want to keep my assets separate.”  Well, some of the investments that you can have to protect them against creditors is if you invest in annuities.  Annuities are something that cannot be attached.  But the main asset that can be protected from creditors, and it doesn’t matter how much you owe them or how many judgments you have, is your home.  Your home is your biggest asset.  You can own your home.  Creditors cannot take your homestead away from you, and even if you don’t owe any money on it, they still can’t take it.  When you pass away, if you leave it to your children or your heirs, well, they still don’t get paid whenever you pass away, and it is passed on to your heirs.  So your homestead is your very best investment as far as protection from creditors.

 

So if you have anymore questions or need to do some estate planning as far as asset protection and estate planning, well, give me a call at 727-847-2288.

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