Asset Protection

Asset Protection has become a fundamental element of estate and will planning. It provides peace of mind, knowing that your hard-earned assets are shielded from potential risks. It also provides a framework by which value can be guaranteed for the next generation(s), irrespective of what happens to the various individuals or their estates during their lifetime.

Individuals use Asset Protection techniques to limit the exposure of their assets to third party creditors of themselves, their spouses/partners and their descendants. These creditors could be HMRC, the local authority, trustee in bankruptcy and/or the family courts in the case of divorce.

Asset Protection can also mean the protection against the beneficiaries themselves. We have all seen instances where beneficiaries have squandered an inheritance through not having the maturity or skills to ensure funds are applied for their long-term benefit.

What is Asset Protection?

Asset Protection refers to the legal strategies and structures put in place to safeguard assets from potential risks, claims and creditors. The primary goal of Asset Protection is to preserve and shield assets to ensure they are available for the intended purposes and beneficiaries, while minimising the potential for loss or seizure.

Why is Asset Protection planning important?

Asset Protection helps mitigate risks associated with business ventures, personal liabilities, professional malpractice claims or other potential legal disputes. By structuring assets appropriately, individuals can minimise their exposure to these risks and ensure that their personal wealth remains intact.

Asset Protection is closely intertwined with estate planning. By employing strategies such as trusts, wills, and other estate planning tools, individuals can protect assets from estate taxes, probate expenses and other potential risks, ensuring that their wealth is efficiently transferred to their intended beneficiaries.

Implementing Asset Protection strategies early, before any potential risks arise, is generally more effective and legally sound than attempting to shield assets after the threat has emerged, which can more easily be targeted as a ‘sham’.

Can Asset Protection help to preserve family wealth?

Asset Protection planning safeguards family wealth so it can be passed onto future generations. By implementing strategies such as trusts and family investment companies, individuals can protect assets from creditors, divorces or other potential threats (such as beneficiary immaturity), ensuring that the wealth remains within the family for longer.

Asset Protection for business owners

Asset Protection strategies can be vital for business owners as they can help ensure financial stability in the face of a failing business and personal liability through things like personal guarantees. By implementing appropriate legal structures and safeguarding key personal assets, entrepreneurs can protect their businesses from potential liabilities, which would otherwise threaten their, and their family’s personal finances.

Why choose Price Slater Gawne?

Our expert team knows just how important Asset Protection is when you are putting in place a financial planning strategy designed to protect your assets from creditor claims.

The Wealth Protection team here at Price Slater Gawne is one of the most respected and knowledgeable teams in the UK and will be pleased to help you discuss your Asset Protection needs. Contact the Wealth Protection team on 03333 058375, or email WealthProtection@psg-law.co.uk.