- Servicing clients worldwide from Sydney
- Book an Appointment
Think asset protection doesn't apply to you? Think again. If you
own assets in your name, your definitely at risk.
Call us on 02 9211 6000 today or request a call back
from a trust and asset protection specialist to learn more.
There is currently no content classified with this term.
Consider this scenario: If you held a net worth of $5 million, you would not be as affected by a $1 million lawsuit
as someone else holding a net worth of just $1 million. The wealthier you are, the easier it is to pay the judgment
and carry on with life. Those with fewer assets could potentially lose everything, with bankruptcy the only way out.
NSW is the third most litigious state in the world. Litigation is becoming a new favorite pastime because it’s
easier to sue someone and win money than it is to earn it. No one is safe.
The only prerequisite for being a litigation target is owning assets of value to someone else. Those assets could
include a family home, investments, money in your bank account, or your business.
You cannot buy insurance as a hedge against every possible scenario.
There are limits to your coverage. For example, you may hold professional liability insurance to protect your
assets from lawsuits relating to your business activities. However, that insurance will not help you in the event
that you were sued due to someone being hurt in a car accident that was deemed your fault.
Transferring all of your assets to your spouse and/or children, especially after something has happened, will not
protect those assets from being seized in a lawsuit. The courts will simply follow the paper trail and consider your
family member a party holding those assets in trust for you.
The time to set-up the basics for protecting your assets is right now. If you transfer your assets
into an asset protection structure down the road and your assets have grown significantly in value, you may become liable for
costly capital gains taxes and stamp duty.
Setting up an asset protection structure is relatively inexpensive. What’s more expensive are the legal fees
associated with defending yourself in court. To make matters worse, in the event you
fall victim to a lawsuit, you lose not only financially but also psychologically.
Owning your business in a Pty Ltd company makes you a sitting duck for litigation. Why?
Because companies are owned by shareholders.
So if you’re sued personally, everything you own in your name is up for grabs including your company shares.
This puts your entire business at risk.
Asset protection planning should be based on the presumption that all of your planning, its purpose, and those
assets will eventually be known to creditors. This is because, one way or another, it usually is. Asset protection
provides the assurance that you don’t have to hide a thing.
Schedule a time to talk to a Asset Protection Specialist who can help you: