Do you ever think about protecting your assets? Some people have the mindset that it will never happen to them. If you're one of those people, you need to think again.
Did you know that it is not a matter of if you get sued in this day and age, but when. If you're in business it's even more likely.
In Australia the average business owner
gets sued 3 times in their life.
NSW and Victoria are amongst
the most litigious states
in the world.
Putting all that aside for a moment, consider this ... Action from the ATO or other government agency sends more businesses broke than anything else.
This information doesn't leave you feeling very secure does it?
You've worked so hard to build up your wealth and assets and it can so easily be taken away...
This is why it is vital to have a solid asset protection strategy in place. How are your assets looking right now?
We are a leading asset protection Accountancy firm in Australia.
We have advanced tax effective asset protection strategies
and systems tailored to protect your wealth.
You can't afford to wait!
In light of this, I'd like to show you how asset protection strategies work by comparing them to an onion. Have a look at the image below.
Asset Protection Strategies
Asset protection is created in layers just like the layers you peel back in an onion.
As per the image above, you start with the outer layer and work your way in to the centre.
Layer 1 - Best Practice
In this layer you want to make sure you are providing the best quality product or service to your clients. Add value to your clients and always have their best interests at heart.
Layer 2 - Insurance
No matter what business you are in, you need to ensure you have the appropriate insurances in place to help get rid of some of the risk of negligent action being taken.
These insurances include professional indemnity insurance, product insurance ad general insurance depending on the kind of business you operate.
Layer 3 - Build a Strong Tax Structure
Having the right structure to operate your business through will give you not only asset protection, but has tax saving benefits as well.
We have a 23 point checklist we go through with our clients to ensure they have the best structure to suit their individual circumstances.
Layer 4 - Second Mortgage or Equity Shift Strategy
In this scenario the Trust Structure becomes another lender borrowing money against your assets. This means on paper you no longer have any equity in your assets and they are no longer worth pursuing in a lawsuit.
This setup does not incur Capital Gains Tax or Stamp Duty. Depending on the second mortgage documentation there may be stamp duty on the mortgage document which is a small percentage compared to the stamp duty payable on the asset as a whole.
Layer 5 - Become Penniless ... On Paper
You want to look like you are penniless on paper. This means that when a lawyer does an asset search on you, they will find that you own no assets and you are not worth pursuing in a lawsuit.
Why So Many Layers?
In a nutshell, the more assets you own, the more layers of protection you need to protect both your privacy and your assets.
Are you adequately protected?
Speak with us for help about your Asset Protection concerns.
Book Now for a free, no obligation 15 minute chat for an expert to look over your asset protection strategy and see if you have your assets adequately secured.
This could literally change your life and will give you peace of mind.
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