Are your assets protected?
Due to a number of factors, asset protection has become an increasingly important issue for both business owners and individuals.
Increased litigation, tax office audits, relationship breakdowns, reliance on complex finance and bankruptcy law changes have all contributed to a need for us to protect our assets for the people you want to benefit from them.
When considering asset protection you should consider, your:
- intangible business assets such as goodwill, trademarks, copyrights, etc
- physical business assets such as equipment, vehicles
- real estate assets
- financial assets such as investments, bank accounts, shares
- personal assets such as jewellery, collectables
- future income or earning capacity
The major risks we face and which can be reduced to some extend include:
- business failure or failure of those owing you money
- litigation from employees, tax office, customers, public
- major contract changes or loss
- injury, illness or death
- relationship or family disputes
Few of us would drive around without house or car insurance because it is easy and common knowledge but most people do not have a plan to protect themselves in the event of less common but more financially devastating consequences.
Insurance is not the only or even the most important means of protecting your assets, it can eliminate particular risks but needs to be cost effective and from a reputable source so it’s there when you need it.
It will never replace correct legal and corporate structures, estate plans (wills, powers of attorney), taxation plans, ownership and control.
You need to take all aspects of your situation into account including your current and future plans to ensure you have the structure appropriate for your plans.
A complete plan will address all the risks and utilise a combination of a number of strategies balanced with a cost/risk ration that you are comfortable with.
If you are not feeling like all aspects of your finances are sufficiently protected then seek advice from your trusted advisor.
Knowing your risk of financial catastrophe is controlled can help you pursue all your goals with far greater confidence.
