If you’re a business owner, two of the most important things you manage are assets and risks – building your wealth and protecting it. There’s no point building wealth if the way things are structured behind the scenes means someone could take your assets. Many business owners are in exactly this predicament without knowing it.
Consider the risk
Your business faces unpredictable risks through its interactions with employees, customers and creditors – which means potential to be sued by a variety of parties. Litigation is increasing each year, partly driven by ‘no win, no fee’ services. Without a barrier between your business risks and your personal assets, your family home and personal investments could be lost.
Building the barrier
The barrier is created through clever use of companies and trusts, and by deciding who within a couple should and should not be a director of each company. One seemingly simple mistake here can cost a family their home. A standard will can also put assets at risk – if the person who dies holds the family’s personal assets in their name, ownership can revert to the person at higher risk of being sued through their directorships.
What you can do
If you haven’t reviewed your asset protection structure in the past 12 months, make it a priority, then review it annually as your life changes. As part of this we also ensure your wills and estate planning are in order, including an enduring power of attorney – because it’s more common to become incapacitated through accident or illness than to suddenly die. It’s all about protecting the families we love.
Your next step
Contact us to make a time to meet and discuss your options, and we’ll outline the process so you know exactly what lies ahead.