You’ve worked hard, made sacrifices and accumulated some good assets and investments. It makes sense to protect them as much as possible from exposure to creditors. This is where an effective Asset Protection Plan comes in. In its simplest form, an Asset Protection Plan is all to do with structuring.
How much your assets are protected depends on the way you structure the ownership of assets, that is, ensuring they’re owned in the right names or entities. Ways in which assets can be owned include companies, trusts, partnerships and superannuation – all of which offer different benefits and tax ramifications. These are explored in more detail in our Asset Protection Plan.
Be careful, if you are restructuring ownership of assets to remove them from creditors, as under specific bankruptcy and liquidation laws, these transactions can be unwound. Be mindful too when transferring assets between entities – you could be subjecting yourself to additional taxes such as stamp duty and capital gains tax.
Asset protection is an intricate yet broad topic. FWO’ Asset Protection Plan paper is a useful tool to help you gain a better understanding of the benefits of each entity. FWO has a wealth of experience in this area and can guide you around potential pitfalls, and structure an Asset Protection Plan that best suits you. Contact FWO today.