Asset Protection Plan

The importance of choosing the right type of entity that is used for the ownership structure of assets cannot be overstated. It is a crucial part of becoming Better Financially Organised.

The transfer of assets between entities can be extremely beneficial in protecting those assets. It can also result in tax liabilities and needs to be done with professional advice.

Assets may be owned by individuals, partnerships, companies, trusts or superannuation funds.

The level of asset protection and transfer taxes will vary in every case.

Berkmans Chartered Accountants help you consider the following key points in relation to asset protection:

1. Aim to limit personal exposure to the debts of your business entity.
2. Consider who should be a director.
3. Consider the use of entities such as companies and trusts preferably at the commencement of a business or as early as possible.
4. Understand the risks of sole traders and partnerships.
5. Secure loans you make to other entities.
6. Separate assets into another entity to reduce exposure from the operating entity.
7. Utilise superannuation to protect assets where this is a practical option

Contact Us at Berkmans Chartered Accountants to obtain your personalised and effective Asset Protection Plan.

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