Hiding assets - Help!

[greent]

I'm in a bind.
I need to determine ways to creatively hide assets and find ways to invest anonymously.

I'm not some shifty character. My wife became incapacitated (essentially brain dead) recently and the only way to avoid going bankrupt due to medical bills is by filing divorce. She is being taken care of by the state medicaid program in a mental hospital full time now.

Unfortunately, the state is going to come after 50% of my assets when the divorce begins in order to recoup some of the medical bills they've already paid. I know my wife would have whole-heartedly wanted me to do everything in my ability to ensure that our portfolio was kept in order so I could continue raising our young kids in a secure financial environment.

Does anyone have financial advice they could provide?

[BlackDiamond]

I don't mean to sound cold but why are you keeping her alive and incurring more bills if she is brain dead? It can't be very pleasant or happy for her.

I think pretty much the only thing they can't touch in bankrupcy is a 401K. Aside from that, you could give money to friends and family you trust to hold onto for you? I'm pretty sure that is illegal.

Are you filing bankrupcy?

[Joan.of.the.Arch]

I don't think greent meant "brain dead" literally. Brain dead IS dead and we dispose of those bodies, not take care of them in a mental hospital.

There are worse things than bankruptcy (and fraud might be one of them, so you might need to talk to a lawyer) but I think it might be true that if you are not divorced and do have resources the state will expect you to pay what you can toward your wife's care. In a divorce, I think someone would be appointed to look after your wife's financial interests, so yes, you probably would have to split your assets. Perhaps something can be put in the childrens' names and not be considered part of the marital assets.

If your wife has already qualified for Medicaid, I'm not sure that there is a need to declare bankruptcy to get out of those bills. My understanding is that the bills accumulated during the event which qualified her for Medicaid should also be covered by Medicaid. Oh yes, if she is permanently disabled, your wife might also or alternatively qualify for Medicare. I think all the people I have known permanently disabled by mental illness have had Medicare.

If you have not been in close touch with social services at the hospital, please do ask them for clarification. This will be a kind of situation they are very familiar with. You might find that neither divorce nor bankruptcy are necessary.

[b4freedom]

The state is most likely going to audit your finances for the past 3 to 7 years. If they see that a considerable amount of your wealth has “disappeared” over past few months, they’ll assume that this is fraud and investigate you for fraud. Then, not only will you be out 50%, but you’ll be in legal trouble. This will include any “gifts” that you give. You may be asked to “un-gift” those gifts. For example, if you give your children a “gift” of a $10,000 college fund, to move the asset from your name to your children’s name, they will say that you did to avoid the state confiscating your joint assets.

Unfortunately, the state is going to come after 50% of my assets when the divorce begins...

The problem is that it isn’t just your assets. It’s assets that belong to both you AND your wife. As she is entitled to half of the assets during the divorce and as she can’t represent herself, the state will represent her and fight for her “interests”. From the states perspective, her fair share is ½ of the joint assets. Of course, they are then going to use those assets to pay themselves for the medical bills.

My advice, get a lawyer ASAP.

Edit: I want to add one thing. Before my Grandpa died, he had a stroke and was on life support. There was absolutely no chance of him recovering. The state (at that time) would not allow him to be taken off of life support. After 9 months in the hospital, my Grandma was near financial collapse and my grandpa could potentially be on life support for years. A lawyer advised that she have my Grandpa transferred to a hospice in another state that didn’t mandate feeding tubes. After he was moved, and after a certain period of time, we (as a family) requested they the feeding tubes be removed. He died two weeks later.

[jIM_Ohio]

consult a lawyer
you might need a really good friend
and find a good accountant too

[GrimJack]

The state is most likely going to audit your finances for the past 3 to 7 years. If they see that a considerable amount of your wealth has “disappeared” over past few months, they’ll assume that this is fraud and investigate you for fraud. Then, not only will you be out 50%, but you’ll be in legal trouble. This will include any “gifts” that you give. You may be asked to “un-gift” those gifts. For example, if you give your children a “gift” of a $10,000 college fund, to move the asset from your name to your children’s name, they will say that you did to avoid the state confiscating your joint assets.

It is perfectly legal for you (and your wife) to gift $12,000 (this may change at any time) each per year to anyone of your choice. It is not a gift if you expect it back. You do not want to end up going to jail to protect your assets during a divorce.

[cschin4]

I think it is pretty sad that one would have to divorce one's spouse in such a situation. But, medical costs and nursing home care are very expensive. If she is under the state Medicaid program, then for what would you be liable? Usually, those on Medicaid have already exhausted the assets before that kicks in. I really think you should go to a lawyer and discuss protecting your assets for your children. Perhaps you could set up some kind of trust for your kids and transfer money or gift it to them.

[LivingAlmostLarge]

They look at assets for 5 years prior, so it's likely too late.

[neatdesign]

Assuming this isn't a troll post, it's inappropriate for you to ask us to help you to commit a crime. (Yes, hiding assets in a divorce can be illegal.) It's also pretty dumb that you're asking for such help on a public forum on the internet.

Hire a qualified divorce attorney and a CPA.

[maat55]

It is perfectly legal for you (and your wife) to gift $12,000 (this may change at any time) each per year to anyone of your choice. It is not a gift if you expect it back. You do not want to end up going to jail to protect your assets during a divorce.

I think there are laws against avoiding government debt through transfers. This is an old question that rises when elderly need assistance but do not want the government to take their assets. Anytime you disburse funds before an government debt is paid, they come after them.

As LAL has mentioned, they go back 5 years.

[maat55]

Avoiding debt that you have assets to pay is immoral. This is an selfish mentality rampant in this country. When you avoid your debts, you pass them to someone else. Your loss is heartbreaking, but it is your loss, not societies. Everyone should make responsible decisions to prepare and not expect society to pick up their tabs.

[GrimJack]

I think there are laws against avoiding government debt through transfers. This is an old question that rises when elderly need assistance but do not want the government to take their assets. Anytime you disburse funds before an government debt is paid, they come after them.

As LAL has mentioned, they go back 5 years.

There is a difference between gifting and avoiding government debt ('debt' is an odd word - it started out as 'det' but was romanized by sticking the 'b' into it, but I digress). I was referring to inheritance rules and the transfer of wealth, mostly to children, tax-free. I posit that there is an interestingly fine line between transferring wealth between generations and avoiding government debt - it would look bad to be gifting non-related persons but could pass muster to children; how about contributing to their college funds?

[maat55]

There is a difference between gifting and avoiding government debt ('debt' is an odd word - it started out as 'det' but was romanized by sticking the 'b' into it, but I digress). I was referring to inheritance rules and the transfer of wealth, mostly to children, tax-free. I posit that there is an interestingly fine line between transferring wealth between generations and avoiding government debt - it would look bad to be gifting non-related persons but could pass muster to children; how about contributing to their college funds?

Why would you gift money when you owe a debt? The OP is clearly attempting to avoid paying a debt to maintain assets.

[cschin4]

Avoiding debt that you have assets to pay is immoral

There is a difference between protecting one's assests to the fullest extent of the laws and hiding or illegally falsifying. The OP is well withing his/her rights to protect his assests based on all the laws and should do so to protect himself and children.
But, what about divorcing your spouse during the "worse" part of your vows? What kind of impact does it have on your children to divorce their mother? And, I don't see how you think that is going to protect anything.

[segmond]

withdrawl lots of cash and go to vegas. claim you lost it in vegas.
you were motivated to earn more money but ended up losing it!
use ATM cards, tons of cash withdrawal in vegas.

just joking! unfortunately, the best time to hide your money is when there is no heat. sorry, i hope it works out for you.