Why some investors consider asset protection advice
Asset protection involves structuring investments and other assets with investment vehicles ensuring they are not easily accessible to creditors or other claimants in an unforeseen event.
Understanding Asset Protection
Asset protection is a strategy that investors use to safeguard their assets from potential legal judgments or creditors. This can include creating a trust, incorporating a proprietary limited company, transferring assets to a company (Pty Ltd), or utilising insurance such as a professional indemnity cover.
Some investors consider asset protection because they work in a high-risk occupation, wish to protect against potential lawsuits or creditors, or want to reduce the risk of losing their assets in the event of financial difficulties, a possible divorce, or other unforeseen events. Alternatively, some investors consider asset protection to help ensure that assets are passed on to future generations in a tax-efficient manner.
Asset Protection & Intergenerational Wealth Transfer
Linking asset protection and intergenerational wealth involve creating legal structures that protect assets from creditors and other risks while allowing for the transfer of assets to future generations. BMPW can help you navigate this process through trust, Pty Ltd companies, and other legal structures.
What is Asset Protection?
Asset protection is a strategy used to protect assets from creditors, lawsuits, and other risks. It involves creating legal structures such as trusts, Pty Ltd companies, and offshore entities to protect assets from creditors and other risks. Asset shelter strategies include utilising insurance policies, asset transfers, and other strategies.
Creating Intergenerational Wealth:
Creating intergenerational wealth involves passing on financial resources and assets from one generation to the next. Our Private Wealth Advisers can help you navigate this process through various approaches, such as asset and estate management, setting up trusts, creating wills and estate plans, and other strategies.
Key factors to consider when thinking of asset protection?
There are several key factors to consider when thinking about asset protection:
- Jurisdiction: Different states and countries have different laws and regulations regarding asset protection, so it’s essential to understand the laws in the jurisdiction where your assets are located.
- Type of assets: Different types of assets may require different types of protection. For example, real estate may require a different strategy than stocks and bonds.
- Risk of liability: If you’re in a profession or industry with a high liability risk, you may need to consider more comprehensive asset safety strategies.
- Potential creditors: It’s important to consider who your potential creditors might be and how they might try to access your assets.
- Cost: Asset protection strategies can be costly, so it’s important to consider the cost-benefit of the options available.
- Flexibility: Some asset security strategies may be inflexible and not allow for changes in your life circumstances, so choosing a strategy you can modify is crucial.
- Tax implications: Asset security strategies may have tax implications, so it’s important to consider the tax consequences of any strategy you’re considering.
- Estate planning: Asset safety should be part of a comprehensive estate plan, which includes a will and trusts, to ensure that assets are passed on to beneficiaries in a tax-efficient manner.
It’s important to consult with a legal and financial professional to design a strategy that fit your unique situation.