Asset protection is a vital part of your business structuring and financial planning.
It simply involves trying to insulate private family assets and valuable business assets from possible future financial setbacks, family disagreements over finances and the failure of family businesses.
You should ask yourself, “What would happen to my personal assets and most valuable business assets if my financial position collapses through no fault of my own? How exposed are my personal and business assets? Could these assets be held or structured in a way that provides more asset protection?”
The greater the distance between the assets and the person at risk, the more difficult it is for a trustee in bankruptcy to bridge that gap and gain access to those assets.
There are “no foolproof ways” to protect your assets. But there are some sensible structures that can be put in place. The appropriate strategies will depend much on your personal and business circumstances.
Legalsense NQ assists with providing advice and strategies on the most appropriate structures for you.