Why Asset Protection

Is So ImportantBy Brett Hetherington

What Is Asset Protection?

For business clients it is the For business clients it is the concept and strategy of concept and strategy of

protecting one’s wealth. Business protecting one’s wealth. Business entities use techniques to limit entities use techniques to limit creditors access to assets while creditors access to assets while

operating within the law.operating within the law.

Business Structures

Currently in Australia Currently in Australia there are four typical there are four typical business structuresbusiness structures

1. Sole Trader

A sole trader is A sole trader is an individual an individual operating a operating a business with a business with a personal ABNpersonal ABN

2. Partnership

A partnership is 2 or more A partnership is 2 or more individuals or entities in business individuals or entities in business (generally Mum & Dad) (generally Mum & Dad)

3. Trust

A trust has a trustee who controls A trust has a trustee who controls the business and beneficiaries who the business and beneficiaries who

share in the profitsshare in the profits

4. Company

A company requires at least A company requires at least one director and shareholderone director and shareholder

The biggest problem with a sole The biggest problem with a sole trader or partnership of individuals trader or partnership of individuals is that there is no asset protection. is that there is no asset protection.

ASSETPROTECTION

In simple terms you are In simple terms you are exposing your personal and exposing your personal and business assets to creditor business assets to creditor

claims or litigationclaims or litigation

Even worse for a Even worse for a partnership is partnership is

the legal principle of the legal principle of ““joint & several” liability.joint & several” liability.

This means that if one partner can’t pay This means that if one partner can’t pay his or her share of debts then the other his or her share of debts then the other partner has to pay their debts as well.partner has to pay their debts as well.

A trust is afforded A trust is afforded the ability to join a the ability to join a corporate entity corporate entity as a trustee and as a trustee and through this through this process you are process you are starting to be able starting to be able to protect to protect business and business and personal assets.personal assets.

As the chances of litigation As the chances of litigation increases and there are increases and there are

greater possibilities of claims greater possibilities of claims by creditors, it is becoming by creditors, it is becoming

more and more important to more and more important to protect your assets.protect your assets.

A review of your current A review of your current business structure is business structure is recommended now.recommended now.

If you want If you want to be to be

proactive in proactive in your your

business, business, don’t forget don’t forget that we offer that we offer

our first 1 our first 1 hour hour

appointment appointment

FREE! FREE!

Contact us now to make an appointment!

Contact UsContact UsPh: 07 3209 7092E: brett@hafs.com.auW: www.hafs.com.au

Unit 6/61-63 Commercial DriveSHAILER PARK QLD 4128