The principle which dictates the planning for asset protection is- Plan for the worst. Business and investment assets are accumulated with back-breaking hard work by a current or previous generation hence need to be protected at all costs.
Some of the threats these assets are exposed to are
- Claims by a Trustee in Bankruptcy
- Business Creditors
- Business Partners
- Relationship breakdown
- Spendthrift family member
- Death
In practice when we have found that there is a widespread notion that I run a business through a company or trust hence my assets are protected. A detailed analysis of client’s affairs often reveals how incorrect that statement is. Recent company and trust law cases including Richstar case have proved that there are no safe heavens.
Clawback provision of Bankruptcy law gives powers to the Trustee in Bankruptcy to recover previously transferred assets.
When you have multiple structures loosely planned there is considerable risk of cross collateralisation.
At Tax Knights we take asset protection seriously and make absolutely no compromise. Our advisers carefully understand your current circumstances and ensure that if your exposure to risk cannot be eliminated it must be reduced to the minimum.
How we can help
- We identify, assess and clearly articulate your risk exposure
- We tailor a solution to your suit your requirements
- We balance various competing objective hence asset protection remain on top of our planning list
- We change plan incongruent to your circumstances
Disclaimer
The information presented here is general in nature; we have made various assumptions which might not reflect your particular circumstances. You should always seek personal advice disclosing individual circumstances to be sure that the information is right for you.