The dominant lion may lounge around the place… but when his territory and pride are threatened, he’ll stop at nothing to protect them. And a typical gorilla father will go to battle with other males, who are known to kill baby gorillas as they try to take over the group. Meanwhile, Emperor Penguin dads are super protective over their mates, their young and the nest, possibly because they play an important role in keeping the eggs warm – balancing it between their bellies and the top of their toes!
These animals are all involved in some kind of asset protection … and it’s often a matter of life and death.
No surprise that humans need to take asset protection seriously too and the stakes can be pretty high. Asset Protection involves keeping your property out of the hands of someone asserting a right against you, perhaps to satisfy a loan or because of litigation. It is sensible to engage in Asset Protection Planning, whereby non-exempt assets (those subject to creditors’ claims) are repositioned as exempt assets (those not accessible to creditors).
Let’s be clear that there are laws in most territories that protect creditors against the transfer of assets with the intent to hinder, delay, or defraud a creditor. These transfers will likely be deemed fraudulent and may be reversed by a court. So Asset Protection Planning needs to begin early on the basis that life is uncertain, business is uncertain and there is always the chance of claims against assets.
It’s essential to consider this early. And talk to an advisor. Your accountant is well-placed to help you!
Most humans will not have to fight an invader to the death but neglecting to plan can have devastating consequences.
Take this short questionnaire to find out if your assets are currently protected.