In terms of estate planning, asset protection refers to ensuring that your assets are protected from various third parties so that they can be securely and properly administered and distributed to your chosen beneficiaries. Irrespective of the size of your estate, there might be various risks involved and a Wills and Estates solicitor may be able to ensure that your assets are protected and properly administered.
One potential risk is personal bankruptcy or insolvency of your business/s. If you run your own business there is a risk of insolvency and penalties if you trade insolvent. For any number of reasons, you may be unable to pay your debts when they fall due. This might subject you to creditor’s claims and an application potentially could be made to wind up your company and distribute any assets to satisfy your creditor/s claims. Also, a business failure may expose you personally if you have provided a guarantee or security over your assets. Creditors might also have a personal security interest under the PPSA. A Wills and Estates solicitor may be able to review and consider your situation and provide a preliminary advice about the appropriate strategies to provide you with your instructed level of asset protection.
Secondly, there may be a real risk from unpredictable and unfortunate events. This might include injury or disease, natural disaster and accidents. Injury or disease may lead to substantial medical expenses, legal costs and costs to third parties. An accident or disaster could lead to personal bankruptcy if you are not adequately insured, as assets may be irretrievably destroyed or lost. You potentially might commence or be required to defend litigation proceedings which could be costly, time consuming and incur the opportunity cost of being unable to attend to your financial and commercial affairs. A qualified Wills and Estates lawyer in our practice may be able to consider your factual matrix and provide appropriate preliminary legal advice to enable you to account for and mitigate these risks to your legacy and wealth.
Even if your creditors do not access your assets during your lifetime to satisfy liabilities you might owe to them, your estate assets may be subject to a claim from creditors. In that case, you need to ensure that your executors have powers under your will to defend your estate to ensure that there is no wasting of estate assets, which is referred to as the tort of devastavit. Probate litigation can be expensive, so it may be advisable to settle your financial affairs inter vivos (during your lifetime). A Wills and Estates lawyer may be able to provide you legal advice to ensure that your will is drafted adequately and appropriately to suit your goals and asset protection needs.
If you need further advice on your wills and estate planning matter, you may book an appointment with us by telephone on (02) 9233 4048 or send an email to info@navado.com.au.
This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.
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If you require assistance with a Wills matter, you should make an appointment to see one of our Lawyers in one of the following locations:
- Sydney
