We protect ourselves and loved ones from the dangers of the world, but what about our money and assets?
It’s becoming more important to find ways to protect assets – from business owners to property portfolio developers and individuals who want to ensure their family and own’s wealth.
Want to know more about Asset Protection Strategies?
Read more from the team of Gold Coast Accountants and Insurance Brokers at Crest to find out.
What does it mean to protect your assets?
In a financial accounting and insurance sense, an asset is any resource that is owned by a business or economic entity. An asset is also an item of property of value and can meet debts, commitments or legacies.
So, protecting your assets involves putting legal strategies in place to safeguard your wealth in the unfortunate event of a lawsuit or creditor claim.
Below are some of the ways you can safeguard and protect your assets.
Choose a sound business structure
The right business structure can save you time and money. That’s why it’s important to get it right.
Simply stated, sole tradership and partnerships are not the best option for asset protection.
Why? Because in Australia, personal assets are exposed to business liabilities if you’re a sole trader or an individual partner in a partnership.
Companies and trusts, on the other hand, offer a degree of added protection.
Keep personal and business activities separate
They say don’t mix business with pleasure, and this motto helps with asset protection, too.
What should you do?
- Keep a separate bank account for your business, and
- Make sure your business name is used on all business documents
Why should you do this?
In the event of running into business trouble, your personal assets may be better protected.
Always use the correct procedures
Not meeting legal obligations due to negligence could lead to creditors having grounds to seize your personal assets.
Here’s what you can do to avoid this:
- Ensure all contracts, agreements and procedures are professional and meticulous.
This can greatly limit your liability with relevant stakeholders.
Consider trusts and other entities
Discretionary trusts are a strategy used by business owners to protect their assets.
As a beneficiary of a discretionary trust, you don’t actually own any of the assets of the trust, the trust does. So, this makes it harder for creditors to make a claim on them.
As with anything insurance, talk to a professional Gold Coast insurance broker to assist.
Talk to a Gold Coast Insurance Broker about Business Insurance
Identifying the importance and necessity of asset protection is one thing, but implementing a plan and acquiring business insurance is another.
Thankfully, insurance broking services are readily available with Crest Insurance, to ensure access to insurance is readily available to you.
We’re here to help you with peace of mind business and individual asset protection strategies.
Need help getting the best asset protection strategy? Contact Crest today for peace of mind and asset protection made simple.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.
