There are many reasons why you need asset protection. The fact that you are a good person and do what is right does not mean that you will not be sued.
People get sued all the time simply because some greedy golddigging predator wants a slice of their assets.
It happened to me a few years ago when I was clearly in the right! I was sued by a lady for not giving family law advice in a tax matter even though my letter stated I wasn’t a family lawyer! The lady admitted that she had a sick kid, and she had run out of time (by law) to sue the family lawyer she had used.
Other reasons include:
I’m not suggesting that in any way. However, as per my example above, many people
You may get a surprise.
You have public liability insurance for rental properties and professional indemnity insurance if you are in a high risk profession Your insurer may not cover you because you breach the fine print of the policy? Or you may have a large excess and be forced to defend an unfair lawsuit.
Not necessarily. It depends upon how your company and trust is structured.
As stated above, look and see who are the directors and shareholders. Not just that but you may run a business and own personal assets in the same trust. If so, your personal assets are at risk.
If you have any doubt, get some independent advice.
You must certainly do. Don’t be deceived.
As stated above, Houghton v Arns shows very clearly that an employee can be liable. In practice employees are not sued very often, but this does not change the fact that they can be sued, and can be liable.
That’s like saying you’ll hold off spending costs on the foundation for a house and build the house on the sand to save some money. In the short term you will save money, in the long term the house won’t stand.
Trying to change things later on is not only costly, but may take years to be effective because of bankruptcy clawback rules which allow the courts to reverse transactions.
As stated in the example above, if a lawsuit is pending, or has already begun, and you transfer an asset into a company or trust, or into your spouse’s name to avoid losing it, the court has the power to reverse the transaction.
And the High Court has shown a willingness to do it in recent times.
You must ensure that you are structured correctly from the beginning. Once a lawsuit is pending it is usually too late. To protect your assets at that time, you would have to incur great expense with no certainty of saving your assets.
You can transfer the house into a trust, but you will be liable for stamp duty, and possibly capital gains tax.
The other option is to use mortgage allocation, eg. assume you are buying another house for $500,000 (House 2). You already own a house worth $400,000 no debt (House 1). You buy House 2 in a trust. You borrow the money and secure it over House 1. So if you are borrowing $400,000 for example, you simply have that on House 1. The effect is you own House 2 in a trust worth $500,000, no debt, and House 1 in your own name, worth $400,000, with $400,000 debt. Suddenly you become less attractive to a potential creditor because House 1 is effectively no longer available, because the bank will get the first bite on the cherry if you get sued and have to sell House 1.
With great difficulty. The Family Court have the power to look straight through trusts. And they take a dim view of people doing “shifty” transactions (as they see it) to prevent their spouses getting their lawful entitlements.
Any asset protection to avoid the family court needs to be undertaken with immense care.
Not really. Buying Australian assets through an Australian trust can cause immense problems. You have legal limitations with respect to buying residential property in Australia through an overseas company or trust. And you may run foul of the Australian Taxation Office.
Again, be very careful if you are looking into anything of this kind. Make sure that you book in with a specialist asset protection or overseas tax expert in Australia.
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Brilliant service!! Could not have asked for a better start to getting my business structure. This world is still completely new to me and I am very impressed with all the resources Warren and the entire team at Wealth Safe have provided to help me understand trusts
Living overseas, with no structures or assets in Australia anymore, it simply didn't make sense to keep paying into their tax system. Thanks to Warren and his team, they guided me through the process of setting up stable business structures, and making sure all the lawyers agreements and professional advise was documented. This ensured I met the obligations of the ATO and was 100% legally compliant with my obligations. I researched my options, and felt secure that WealthSafe took all precautions to ensure I was doing the right thing, and benefitting financially at the same time
After getting so much conflicting advice from other sources, we were completely confused. Being global business owners, we needed both Australian and international advice, so we reached out to War ren to help us understand exactly how we could structure our businesses to ensure we were well protected. It was vital to us that our future growth and decisions were taken into account. Not only did Warren give us the highest quality advice, and go above and beyond in ensuring we understood the full spectrum of what we were putting in place, but he has always been available for follow up questions, is always happy to get us on the phone for clarification, and he has shared the expertise in his team with us. At first, we have to be honest, we were really concerned about spending money on a consultation. The outcome is although not cheap, it is the best money we have ever spent. We can see significant savings, know we are structured well, have a fully dedicated and professional team behind us and have expert advice available when we need it. We can’t recommend Warren and the Wealth Safe team enough. Thank you
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He is very professional, knowledgeable and creative with his tax planning strategies, and very attentive in answering your questions and working with you to find the best set up for your individual situation. I feel confident working with him and his team, and his level of expertise is outstanding. I wouldn't trust any other company, and would highly recommend Warren Black and Wealth Safe to protect your assets
Although I thought the result I had figured out with my accountant were the most tax effective way I could setup myself up. I was in a position where I would have to pay 31k in tax. Warren found something in how I was setup, which turned my situation around to getting $15k returned to me. It's a $46k turn around.
Warren was able to set me up, and help me look forward to further tax reductions for the future. Also for improved asset protection. Warren also did bloodline wills for me and my wife. Full Review Here
I'm in the mining industry and run a small trading business. I had a tricky situation I had to get out of. I had default on my credit files. I got Warren on the job, he loves that sort of challenge. He didn't even charge me full price, he was excited at the challenge of helping me out. He succeeded and got rid of my default! I get Warren to do all my work now. I would recommend him to anyone
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I run a small business. I was concerned about safeguarding my assets, myself and my family, and the amount of tax I was paying, but I also wanted to be legal and not get into trouble. Warren was able to provide me with a structure that protected me and my family and my assets and also helped to significantly and legally reduce the tax that I had to pay. Sure I had to pay and they aren’t the cheapest nor the most expensive, however it was well worth the fees paid. I certainly feel more comfortable and secure now
They were able to walk me through the whole process, even a tax dummy like myself.... I was very very impressed with the level of service. It was really end to end. They were always there to answer questions, help me complete paperwork and connected me with all the right people. I can't recommend Warren and Wealthsafe highly enough Full Review Here
Virna, Warren and the Wealth safe team have provided us with a professional and efficient experience helping us to identify and create a customised financial structure to suit our needs. They clearly have a great deal of knowledge regarding taxation in Australia. Also Warren's seminars have been of great help. We absolutely would recommend their services and are forever grateful for help and advise provided
I am a doctor (GP) who was making a good income, however, I was highly dissatisfied with the high amount of tax I was paying, and also feeling a little lost and frustrated in my life in general. I signed up to work with Warren and his team at Wealth Safe. It was one of the best things I have ever done. Firstly, I got quality advice on my tax and was restructured and legally was able to minimize my tax and get on top of it. Secondly, I joined his mastermind and got some personal mentoring, which was significant. It helped me shift a lot of mental and spiritual blocks, and financial imprints which seemed to be blocking moving forward and making major decisions. I learned also how to manifest and create what I wanted rather than what I don’t want, and I have even manifested a wonderful relationship with a very supportive partner. So all round, a great decision. Thanks Warren, and I would recommend Wealth Safe and Warren’s tax advice service and manifestation and imprint clearing to anyone!
I worked with Warren Black to open a Hong Kong corporation during the summer of 2018. Warren came highly recommended from my business contacts, who said that he was honest, trustworthy, and very knowledgable. I have to agree. My experience working with Warren was very good. Warren was extremely attentive to my questions, replying with solid answers in less than a day. He also took the time to explain options and rules in detail. When faced with some unique challenges that most businesses don't face, Warren was quick to roll up his sleeves, take action, and even put me in touch with his team so the process could move forward rapidly. This was above and beyond what I expected. To top it off, I found him very personable and really a pleasure to work with. If anyone is looking at a business entity in Hong Kong or Malta, I highly recommend Warren Black.
Warren, Virna and the team at Wealth Safe were fantastic in helping me set up multiple business structures overseas. They were always willing to have a chat on the phone whenever I felt like I needed extra help and they always replied quickly to my emails. The advice and structure set up was tailored to what I wanted to achieve and the whole process was easy and straight forward. I would 100% recommend utilizing their knowledge and expertise in setting up overseas and creating the life that you want to live :) I can't thank them enough.
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