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At Mattox & Wilson, we help individuals and families in New Albany and throughout Indiana protect the wealth they have worked years to build. Asset protection is not about hiding money or evading legitimate obligations. It is about using legal strategies to safeguard what clients have earned from unforeseen circumstances, creditor claims, lawsuits, and the potentially devastating costs of long-term care.
We have seen hard-working professionals, business owners, and retirees lose substantial portions of their estates because they did not implement proper protection strategies before problems arose. Asset protection planning works best when done proactively, before creditors appear or lawsuits are filed. Once a claim exists, options become significantly more limited due to fraudulent transfer laws.
Our approach at Mattox & Wilson combines estate planning, business structuring, and strategic use of legal tools to create comprehensive protection tailored to each client’s unique situation and goals.
If you need help protecting your assets, we invite you to call our office at 812-944-8005 to schedule a consultation with an experienced New Albany asset protection lawyer.
Asset protection refers to legal strategies designed to protect wealth from potential creditors, lawsuits, divorces, and other claims. The goal is to structure ownership of assets in ways that make them difficult or impossible for creditors to reach while maintaining the owner’s practical control and use of those assets.
Indiana residents face numerous potential threats to their wealth:
Asset protection planning provides multiple layers of defense against these threats. At Mattox & Wilson, we evaluate each client’s specific risk profile and design protection strategies accordingly.
If individuals or families in New Albany have accumulated significant wealth and want to protect it from potential claims, they should contact Mattox & Wilson for a confidential consultation about asset protection planning.
Indiana law provides several legitimate tools for protecting assets. We combine these tools strategically based on each client’s circumstances, assets, and risk factors.
Trusts are among the most powerful asset protection vehicles available. Different types of trusts offer different levels of protection:
The trade-off is that the grantor cannot simply take assets back out of the trust. We carefully structure these trusts to provide beneficiaries access to funds when needed while maintaining creditor protection.
Indiana allows the formation of LLCs, which provide liability protection for business owners and can serve as asset protection vehicles for investment assets like rental real estate.
When individuals own rental properties in their personal names, they expose all of their personal assets to liability if someone is injured on the rental property. Transferring rental properties to LLCs creates a liability barrier. If someone sues over an incident at the rental property, they can only reach assets inside the LLC, not the owner’s personal residence, retirement accounts, or other assets.
Indiana’s LLC charging order protection provides additional benefits. If an LLC member has a personal creditor (unrelated to the LLC business), the creditor generally cannot seize the member’s LLC interest or force liquidation of LLC assets. Instead, the creditor is limited to a “charging order” that only entitles them to distributions the LLC actually makes to the member. If the LLC does not make distributions, the creditor receives nothing while potentially owing taxes on the member’s share of LLC income.
This makes LLCs particularly effective for holding investment real estate, securities portfolios, and other valuable assets.
Family limited partnerships operate similarly to LLCs but use a partnership structure. Parents typically serve as general partners maintaining control, while children or trusts hold limited partnership interests.
FLPs provide asset protection through the same charging order protection that applies to LLCs. They also offer estate planning benefits by allowing parents to transfer limited partnership interests to children at discounted values for gift and estate tax purposes.
Insurance is the first line of defense in asset protection planning. We help clients evaluate their coverage and identify gaps:
Indiana law provides a homestead exemption that protects equity in a primary residence from most creditors. Currently, Indiana’s homestead exemption is $22,750 per person (or $45,500 for married couples filing jointly),[1] though this amount adjusts periodically.
This exemption is relatively modest compared to some states. We often recommend additional strategies to protect home equity beyond what the exemption covers.
Indiana law provides strong protection for retirement accounts. ERISA-qualified plans (401(k)s, profit-sharing plans, defined benefit pensions) receive unlimited protection from creditors under federal law, with limited exceptions for certain tax debts and domestic support obligations.
[1] These figures reflect the 2026 exemption amounts; however, these amounts can change from year to year.
IRAs receive protection under Indiana law up to amounts necessary for support of the account holder and dependents. In practice, Indiana courts have been generous in applying this protection. However, we recommend clients maximize contributions to employer-sponsored ERISA plans before funding IRAs when asset protection is a priority.
Indiana recognizes tenancy by the entirety for property owned by married couples. Property held this way is protected from creditors of only one spouse. If only one spouse has a judgment against them, creditors cannot reach property held as tenants by the entirety.
This protection only applies to debts of one spouse individually, not joint debts or debts of both spouses. It also terminates if the couple divorces or if one spouse dies (at which point the property becomes solely owned by the surviving spouse and subject to their individual creditors).
We routinely review how married clients hold title to property and recommend restructuring to take advantage of entirety protection where appropriate.
The right combination of these tools depends on individual circumstances, types of assets, and specific risks. Contact Mattox & Wilson to discuss which asset protection strategies make sense for specific situations.
Asset protection planning and estate planning overlap significantly but serve different primary purposes.
At Mattox & Wilson, we often integrate both disciplines because they often work well together. A revocable living trust used for estate planning provides no asset protection during the grantor’s life because the grantor maintains complete control and can revoke the trust at any time. Creditors can reach assets in a revocable trust just as easily as assets the grantor owns outright.
However, a revocable living trust can include provisions that create asset protection for beneficiaries after the grantor’s death. By including spendthrift provisions and keeping inherited assets in trust rather than distributing them outright, we protect inheritances from beneficiaries’ creditors, divorces, and poor financial decisions.
Irrevocable trusts used for asset protection also accomplish estate planning goals by removing assets from the taxable estate and controlling how assets eventually pass to the next generation.
Proper planning addresses both goals simultaneously. Clients who only do estate planning miss opportunities to protect assets during life. Clients who only focus on asset protection may create structures that complicate estate administration or create unintended tax consequences. We take a comprehensive approach that considers lifetime protection, transfer goals, tax efficiency, and family dynamics to create integrated plans serving multiple purposes.
The best time for asset protection planning is before any claims, lawsuits, or creditor issues arise. Once a claim exists or appears likely, transferring assets to protective structures can violate fraudulent transfer laws. Indiana has adopted the Uniform Voidable Transactions Act (formerly the Uniform Fraudulent Transfer Act), which allows creditors to void transfers made with intent to defraud creditors or transfers made without receiving reasonably equivalent value when the transferor was insolvent or became insolvent as a result of the transfer.
The law creates presumptions of fraudulent intent when transfers are made to insiders (family members) for less than equivalent value, or when the transferor retains control or benefit from the transferred assets after the transfer.
Transfers made after a claim arises or when a claim is reasonably foreseeable are highly vulnerable to attack as fraudulent transfers. Even transfers made before claims arise can be challenged if made within certain look-back periods, which vary depending on the circumstances but can extend up to four years in some cases.
This is why timing matters so much. Asset protection strategies implemented years before any problems arise are generally protected. Transfers made after receiving a lawsuit or when financial difficulties are apparent will likely be set aside.
We encourage clients to begin asset protection planning:
The important principle is to act proactively, not reactively. Waiting until problems appear eliminates most effective strategies.
Individuals who have not yet implemented asset protection planning should contact Mattox & Wilson today to begin the process before issues arise.
Business owners face unique asset protection challenges because business operations create ongoing liability exposure. We help New Albany business owners separate business and personal assets to prevent business problems from destroying personal wealth.
The business entity structure determines whether business liabilities can reach personal assets:
Merely forming an LLC or corporation is not enough. Owners must respect corporate formalities, maintain separate finances, adequately capitalize the business, and avoid commingling personal and business assets. Failing to do so can result in “piercing the corporate veil,” where courts disregard the entity and hold owners personally liable.
Business owners with multiple ventures or significant assets should consider using multiple entities:
If the operating company faces a lawsuit, the plaintiff can only reach operating company assets, not assets held by the separate holding company.
We have implemented strategies where clients own their business real estate through one LLC, operate the business through a second LLC, and hold investment assets through additional entities. This compartmentalization ensures that problems in one area cannot destroy assets in another area.
Business owners must be cautious about personally guaranteeing business debts. Banks, landlords, and suppliers often require personal guarantees from LLC or corporation owners, especially for new or small businesses.
Every personal guarantee eliminates the liability protection the business entity provides for that particular debt. If the business cannot pay, the creditor can pursue the owner’s personal assets. We negotiate to limit or avoid personal guarantees where possible. When guarantees are unavoidable, we work to limit their scope, duration, or amount. We also ensure clients understand which business debts they have personally guaranteed so they can make informed decisions about business risks.
LLCs and corporations must comply with Indiana formalities to maintain liability protection:
We help business clients establish procedures to maintain compliance and avoid inadvertently undermining the protection their entities provide.
Business owners in New Albany should contact Mattox & Wilson to review their current business structures and implement comprehensive protection strategies that separate business liabilities from personal wealth.
Long-term care costs represent one of the greatest threats to wealth for Indiana seniors. Nursing home care can cost $8,000 to $10,000 per month or more, rapidly depleting even substantial estates.
Medicaid will pay for long-term care, but only after individuals have spent down their countable assets to qualification levels. For single individuals, Indiana Medicaid allows countable assets of only $2,500. For married couples, the community spouse (the spouse not in the nursing home) can retain approximately $148,620 in countable assets (this figure adjusts annually).
Asset protection planning for Medicaid involves restructuring assets to maximize what families can preserve while achieving Medicaid eligibility for long-term care coverage.
Indiana applies a five-year look-back period for Medicaid long-term care eligibility. This means Medicaid examines all asset transfers made within five years before applying for benefits. Transfers made for less than fair market value during the look-back period create periods of Medicaid ineligibility.
The ineligibility period is calculated by dividing the value of transferred assets by Indiana’s average monthly cost of nursing home care. This is referred to as the Medicaid Penalty divisor; it is set at $8,027 for 2026. For example, if someone gives away $100,000 and then applies for Medicaid, they might face a penalty period of approximately 12.46 months during which Medicaid will not pay for care.
This five-year look-back period makes advance planning essential. Transfers made more than five years before needing long-term care do not create penalty periods. However, transfers made shortly before or after entering a nursing home create significant problems.
Certain assets are exempt from Medicaid consideration and can be retained regardless of value:
Understanding exemptions allows us to position assets to maximize protection while achieving eligibility.
Medicaid-compliant annuities convert countable assets into an income stream, which changes the Medicaid treatment. When structured properly, these annuities can protect substantial assets while achieving Medicaid eligibility. However, they must meet specific requirements:
These annuities are complex and must be structured precisely to comply with Medicaid rules while providing the intended protection.
Irrevocable trusts are the primary tool for protecting assets while planning for potential Medicaid needs. By transferring assets to an irrevocable trust more than five years before needing care, individuals can typically protect those assets from nursing home costs while maintaining some benefits from them.
We structure these trusts to:
The key limitation is timing. These trusts only provide Medicaid protection if created and funded more than five years before applying for benefits.
When one spouse needs long-term care but the other spouse remains healthy, additional strategies protect assets for the community spouse:
Indiana law provides certain protections for community spouses, but without proper planning, the couple may still lose far more than necessary to nursing home costs.
Paying family members for caregiving services through formal caregiver agreements can reduce countable assets without creating transfer penalties, as long as the agreements are properly structured and document actual services provided at reasonable rates.
Individuals concerned about long-term care costs should contact Mattox & Wilson well before care is needed. The earlier we can implement planning, the more assets we can protect while ensuring access to necessary care.
Indiana is an equitable distribution state, meaning courts divide marital property fairly (though not necessarily equally) in divorce. Asset protection planning intersects with divorce in several important ways:
Prenuptial agreements signed before marriage and postnuptial agreements signed during marriage can define what property remains separate and what becomes marital. These agreements provide asset protection in the event of divorce.
Indiana courts enforce properly drafted prenuptial and postnuptial agreements that:
We draft these agreements to protect assets acquired before marriage, expected inheritances, business interests, and other property clients want to keep separate.
Indiana courts do not strictly separate “marital” and “separate” property the way some other states do. Instead, courts typically place all assets and debts into one marital pot, regardless of when or how they were acquired, and then divide that estate in a just and reasonable manner.
This means that property owned before the marriage, as well as assets received during the marriage by gift or inheritance, are generally still considered part of the overall marital estate. However, the origin of the property can still matter. Courts may consider whether an asset was acquired before the marriage or through inheritance when determining how to divide property fairly.
That said, separate property can lose its distinct character even more easily if it is mixed with marital assets. For example, depositing inherited funds into a joint account used for household expenses can make it difficult to argue that those funds should be treated differently.
We work with clients to preserve and clearly document the origin of assets, which can be critical when advocating for a favorable division. This includes:
Taking these steps can strengthen your position when the court evaluates what constitutes a fair division of the marital estate.
Assets held in certain types of trusts may receive protection in divorce:
Indiana courts can consider various factors when dividing property, and trust assets are not automatically exempt from consideration. However, properly structured trusts can provide significant protection.
Business owners face particular challenges in divorce because businesses are often the most valuable marital asset. Even if one spouse started the business before marriage, any increase in value during the marriage may be marital property.
Strategies to protect business interests include:
We work with business valuation professionals and divorce attorneys when business interests are at stake to protect clients’ business ownership and operations.
Individuals with significant assets entering marriage or currently married should contact Mattox & Wilson to discuss prenuptial agreements, postnuptial agreements, and other strategies to protect assets in the event of divorce.
While asset protection planning provides valuable benefits for many people, it is not right for every situation, and there are important limitations clients must understand.
Asset protection planning provides little benefit after creditors or lawsuits have already appeared. Transferring assets after receiving notice of a claim, after an accident occurs, or when financial problems have become apparent will likely violate fraudulent transfer laws.
Courts can void transfers made with intent to defraud creditors or transfers made without adequate consideration when the transferor is insolvent. We cannot help clients hide assets from existing creditors.
Asset protection planning involves costs:
For individuals with modest assets or low liability risk, these costs may outweigh the benefits. Someone with $100,000 in assets and excellent insurance coverage might not benefit from complex entity structures that cost several thousand dollars to establish and hundreds of dollars annually to maintain. As asset protection lawyers with decades of legal experience, we help clients evaluate whether the protection justifies the cost based on their specific circumstances.
Some asset protection strategies create tax consequences:
We work with CPAs and tax advisors to ensure asset protection planning does not create unacceptable tax consequences or that clients understand and accept the tax trade-offs involved.
Effective asset protection often requires giving up some control or flexibility:
Clients must be comfortable with these limitations. We design structures that provide maximum flexibility consistent with effective protection, but some trade-offs are unavoidable.
Asset protection planning does not eliminate legitimate obligations:
Asset protection is about protecting assets from unforeseen future claims, not evading current obligations.
At Mattox & Wilson, we provide honest assessments of whether asset protection planning makes sense for each client’s situation. We will not implement strategies that are illegal, ineffective, or simply not cost-justified.
In our practice, we regularly see individuals who have attempted asset protection planning without proper guidance or who have made critical errors that undermine their protection. Common mistakes include:
The most common mistake is waiting until problems appear to begin planning. Once a lawsuit is filed or a creditor claim arises, options become severely limited. Transfers made at that point will likely be voided as fraudulent. Many people believe they can quickly move assets when problems arise. This almost never works and often makes situations worse by appearing to be intentional fraud.
Forming an LLC or corporation provides no protection if the entity is not properly maintained. Common errors include:
Any of these mistakes can result in piercing the corporate veil, making owners personally liable for business debts.
Many people believe they can simply give assets to family members or transfer them to entities without consequence. Fraudulent transfer laws restrict when and how assets can be transferred.
Transfers for less than equivalent value while insolvent, or transfers made to defraud creditors, can be voided years after they occur. The look-back period varies but can extend four years or more.
Revocable living trusts are excellent estate planning tools but provide no asset protection during the grantor’s lifetime. Because the grantor can revoke the trust and take assets back at any time, creditors can force the grantor to do exactly that. As dedicated New Albany asset protection attorneys, we routinely meet with people who believe their revocable trust protects their assets from creditors or Medicaid. It does not.
Retirement accounts, life insurance, and other assets with beneficiary designations pass outside of wills and trusts directly to named beneficiaries. Common mistakes include:
Proper beneficiary designation planning protects assets both for the owner and for beneficiaries who receive them.
Asset protection planning must coordinate with estate planning, tax planning, and business planning. Implementing one without considering the others creates conflicts and inefficiencies. We take a comprehensive approach that ensures all elements of a client’s planning work together rather than against each other.
The internet provides vast information about asset protection strategies, and various services sell DIY LLC formations and trust documents. The problem is that effective asset protection requires understanding how different tools work together, how Indiana law applies, and how to avoid pitfalls.
Generic documents that are not tailored to specific situations often provide no actual protection. Worse, they can create a false sense of security that delays proper planning until it is too late.
Individuals who have attempted asset protection planning on their own or who are unsure whether existing planning is adequate should contact Mattox & Wilson for a comprehensive review of their current situation and recommendations for improvement.
Our approach to asset protection planning is thorough, personalized, and integrated with overall financial and estate planning goals.
We begin by understanding each client’s complete financial picture:
We evaluate the client’s specific liability risks. A surgeon faces different risks than a real estate investor or a corporate executive. We tailor strategies to address actual risks rather than implementing generic one-size-fits-all solutions.
Based on the risk assessment, we develop a comprehensive strategy using appropriate combinations of:
We explain each recommended strategy, including how it provides protection, what it costs, what limitations it has, and what alternatives exist. Clients make informed decisions about which strategies to implement.
We prepare all necessary documents, including:
We coordinate with clients’ CPAs, financial advisors, and insurance agents to ensure all aspects of the planning work together smoothly.
Asset protection planning is not a one-time event. Circumstances change, laws change, and planning must be updated to remain effective.
We recommend regular reviews of asset protection planning:
We help clients maintain their entities, update planning documents, and adjust strategies as circumstances evolve.
We believe clients should understand their planning. We explain concepts clearly, answer questions thoroughly, and ensure clients know how their planning works and what they need to do to maintain it.
Effective asset protection requires clients to follow through with proper management of entities, compliance with formalities, and avoiding actions that undermine protection. Educated clients are successful clients.
The wealth individuals and families have built through years of work, careful saving, and wise investment deserves protection from the numerous threats that exist in today’s litigious society. Asset protection planning provides that protection, but only when implemented correctly and proactively.
At Mattox & Wilson, we have helped numerous clients in New Albany and throughout Indiana protect their assets using comprehensive, legally sound strategies tailored to their unique situations. We understand Indiana law, we stay current with changes that affect asset protection planning, and we take the time to understand each client’s specific needs and goals.
Waiting until problems arise eliminates most effective protection strategies. The time to plan is now, while options remain available and strategies can be implemented properly.
Contact Mattox & Wilson today to schedule a confidential consultation about asset protection planning. Call our New Albany office to learn how we can help protect assets from creditors, lawsuits, long-term care costs, and other threats. The planning we implement today safeguards the financial security families have worked so hard to build.
