Protect your Assets, Protect your Wealth

Protect your Assets, Protect your Wealth Protecting your assets is one of the most important steps in any financial, tax or estate plan. Whether you are protecting your personal assets or your business empire, do not overlook the possibility of your hard earned assets being accessible to creditors, tenants, clients, even the general public if you are not adequately protected. Many people are shocked to discover that their assets are at risk! In the event of being sued, you want have the confidence of knowing that even if the litigation is successful, your assets are safe. Recently, there have been some horrific stories of people being sued. It can happen to anybody so don't think you are untouchable. If an intruder enters your home and injures themselves - you could be liable! As a property investor you could be sued by a tenant for tripping over a piece carpet that you didn't even know was loose. As a driver, if you forget to register your vehicle, your insurance may not cover you in the event of an accident and then your personal assets could be at risk. So how do you go about protecting your assets? There are two main ways of protecting your assets: - Insurance: One of the first steps of asset protection is making sure you have adequate insurance cover. There are many sorts of insurance available from home, contents, professional indemnity to health insurance. Find a good advisor that can explain the purpose of each one and help you decide what is adequate. Also remember to read the fine print and be familiar with terms of your insurance contract. If there is anything you are not sure about, ask your advisor. You need to be certain about what is, and what isn't covered if you need to make a claim. - Structure: The utilization of an effective structure can provide "peace of mind" asset protection if you are in business or have investments that you want to protect. By employing some good advice and setting your structure up correctly from the start not only can you protect your assets, but you will probably also minimize your tax bill in the process. The use of discretionary trusts with a corporate trustee is an effective and commonly used asset protection structure in Australia. Make sure you have a chat to your accountant to see what the best structure is for you and your assets. Remember that you have worked hard for what is yours. Find an asset protection plan that is affordable but most of all effective. The laws can be complex so make sure you talk to someone that you trust and make sure they are working for you. Protect your assets, and enjoy them for life.