Asset Protection

In an estate planning context, assets can come under threat from a variety of sources, eg:

• The provision of a guarantee or indemnity, eg in respect of the business of a spouse or of a home or other loan taken out by a child;
• A future family law claim made against a child, eg where funds are to be provided to help the child buy a house;
• Debts incurred in operating a business; or
• A future claim against a deceased estate by a hostile or aggrieved family member.

Many of these risks can be removed or reduced if they are addressed long before the risk event occurring, eg by carefully drafted parent to child loan agreements (preferably secured) or by ensuring that assets fall outside the reach of an estate challenge. For people starting new domestic relationship, trusts can be established to ensure children from an earlier relationship are financially protected.

Personal trust summaries are available from Estate Planning Equation – Preventative Law for both a concessionally taxed child support trust and a pre-relationship capital reserved trust.