Do you pass
the asset
protection quiz?

QUESTION 1  Is asset protection about hiding your assets from others?

FALSE

In fact, it is the opposite.

Asset protection provides the assurance that you don’t have to hide a thing.

If your creditors want to find your assets, they will. By using appropriate strategies and structures you can safeguard those assets

QUESTION 2 Is asset protection only for the wealthy?  FALSE

The wealthier you are, the more likely you are able to pay any judgements.

It is usually the smaller business owners with fewer assets who are more vulnerable to losing everything and end up in bankruptcy.

QUESTION 3 If I have insurance do I need asset protection?  FALSE

Insurance is that necessary evil we should all invest in. However, it doesn’t cover all events. Ensuring your assets are in the correct entity should be your most important priority as a business owner.

QUESTION 4  Do only business owners need asset protection?  Litigation is fast becoming a favourite pastime – even in Australia.

While it continues to be easier to sue someone these days than it is to go to work, we will never be safe.

So FALSE is the answer to this one.

If you own assets (family home, cash, cars etc) that are of value to someone else, you will always be vulnerable.

QUESTION 5 Because my business entity is a company, am I fine?  Because companies are owned by shareholders, shareholders are sitting ducks to those who seek financial retribution.

If everything you own is in your name, it is up for grabs – including your company shares. This puts your entire business at risk.

FALSE!

QUESTION 6 But what if I don’t have enough assets to warrant protecting them? Assets (property and businesses) usually grow in value over time.

When you dispose of an asset (sell it to a new entity) you may become liable for costly capital gains taxes and stamp duty.

FALSE!

So NOW is always a good time to set up the basics for protecting your assets.

QUESTION 7 If I get in trouble, can I transfer my assets to my spouse/family?  FALSE

You can run, but you can’t hide!

If you transfer your assets to your spouse or children (especially after something has happened), those assets are not ruled out 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.

QUESTION 8 Will it be too expensive?  What will be more expensive are the legal fees you will be dishing out if you ever go to court! Not only are there financial repercussions, it’s also the mental stress and anxiety that comes along with it.

So FALSE – Setting up an asset protection strategy is relatively inexpensive.

Why not call us to find out? Can’t hurt. No obligation. Just a friendly initial chat.

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Contact the office

It is hard to make these decisions on your own.

There are pros and cons and different asset protection strategies.

Don’t feel like you have to make these decisions alone.

We are only a phone call away.


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Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. © 2022