Asset Protection Planning Lawyers

What is asset protection planning?

Asset protection planning is the proactive, legal structuring of your assets to shield them from future risks such as creditors, litigation, and matrimonial disputes. It involves building a legal fortress around your wealth before a threat materialises.

Is asset protection legal?

Yes, completely. Proactive asset protection planning uses legitimate, well-established legal structures like trusts and companies to organise your affairs. It is a prudent and necessary strategy for managing risk.

When is it too late to start asset protection?

The ideal time is now, before a specific threat exists. Once a legal claim is made or insolvency is foreseeable, transferring assets can be legally challenged and unwound by a court.

How does a trust protect assets?

A trust separates legal ownership from beneficial enjoyment. The trustee owns the asset, while beneficiaries receive the benefit. Because you no longer personally own the asset, it is generally shielded from personal creditors and legal claims.

What is firewalling?

Firewalling is the core principle of asset protection. It involves using legal structures to create a separation between high-risk activities, such as a business, and protected personal assets like your family home.

What are the main threats to my wealth?

The primary threats include commercial risks from business creditors, personal litigation arising from disputes or accidents, and matrimonial property claims resulting from divorce, including those involving children.

What is claw-back risk?

Claw-back risk arises when a court reverses asset transfers made to defeat creditors. This is why asset protection must be proactive and carefully structured well before any dispute or financial distress arises.

What is a multi-layered structure?

A multi-layered structure uses several legal entities together, such as a trust owning a company, to create multiple levels of legal separation. This approach provides significantly stronger protection than relying on a single entity.

Is putting assets in my spouse’s name good protection?

No. This is a common but flawed approach. It exposes assets to your spouse’s personal risks and provides little protection in the event of a matrimonial dispute.

What does a stress-test of my structure involve?

A stress-test is a detailed review of your existing trusts and companies to identify legal weaknesses, compliance gaps, and vulnerabilities that could be exploited in a legal challenge.

Does asset protection work for international assets?

Yes. International asset protection often involves structures in stable foreign jurisdictions with strong privacy and trust laws, providing an additional layer of protection against local threats.

How does asset protection differ from tax planning?

Asset protection focuses on shielding wealth from legal threats such as creditors, while tax planning focuses on legally optimising tax outcomes. An effective wealth strategy integrates both disciplines.

Can a structure protect me from personal guarantees?

If a personal guarantee has already been signed, protection is limited. The key strategy is to firewall core personal assets in advance and avoid personal guarantees wherever possible.

Can I still control my assets within a trust?

Yes. A high degree of control can be retained through key roles such as appointor of the trust or director of the corporate trustee, while still maintaining asset protection integrity.

Will my structure seem aggressive to a court?

No. A well-designed, proactively established structure is generally viewed as prudent financial planning. Courts tend to scrutinise last-minute, reactive transfers, not properly planned arrangements.