An Asset Protection Plan covers the ownership structure of assets, ensuring they are owned in the right names or entities to limit the risk of exposure to creditors.

It can take a lifetime to grow and accumulate your wealth and asset portfolio, but only a moment in time for it to be lost or taken away, hence, it makes perfect sense to protect them as best as you can from exposure to creditors. This is where an effective Asset Protection Plan comes into play. In its simplest form, an Asset Protection Plan has to do with structuring in a way appropriate to your individual circumstances.

To avoid significant losses, it is important to have the right strategies in place to safeguard your assets. If you are restructuring the ownership of your assets it is important to bear in mind that when transferring assets between entities; you could be subjecting yourself to additional taxes such as stamp duty and capital gains tax. The effect of the taxes on your situation needs to be understood before proceeding.

Traditionally people have used trusts to protect their asset portfolio. A trust is useful as the individual does not own the asset; it is owned by the trust. If the individual is sued, they have nothing to lose, while the individual controls the trust, the individual has no ownership of the assets in the trust.

As a part of an asset protection plan, assets can be owned by:

• Trusts
• Companies
• Partnerships
• Superannuation Funds

However, the selection of the particular entity to be used in the strategy has its own benefits, tax implications and legal ramifications.

If you are concerned about your exposure to creditors and the growing litigious mentality in our changing society, contact us for a review of your current position with a view to develop a suitable strategy for the protection of your hard earned assets.