Gaining creditor protection

It's important to understand that while trusts can certainly help protect your assets and pass on wealth, they are not intended as a means of evasion. Placing your assets in a trust will not help if you owe money and creditors are knocking down your door to take your possessions as payment. This structure is not intended to help people skirt laws or avoid paying their debts. However, when used appropriately, family trusts are an excellent option to shield assets from potential threats and ensure that your wealth goes to intended beneficiaries (i.e. loved ones).

Loans are something of a necessary evil

In the course of your lifetime, most of us rack up quite a bit of debt. We take out loans to pay for college, a house, cars, and more. Some of us start our own businesses. Because most of us don't happen to have tens or hundreds of thousands of dollars lying around for these big-ticket purchases, loans are something of a necessary evil.

You only want a mortgage against your home

Still, we take on these loans with the full intention of paying off our debts over time. What happens if you lose your job, an injury or illness leaves you with mounting debt and you're unable to work, or worse, you pass away prematurely? In such events you want to make sure your family isn't evicted as your home is claimed to pay your debts.

Keep your personal and business assets separate

Shielding assets from creditors doesn't necessarily have to be an underhanded affair - it's simply smart planning, a precaution to protect your family. We all have debt and most of us pay in good faith. But sometimes circumstances beyond our control leave our personal assets vulnerable. When you engage in appropriate asset protection well in advance of such issues, you can help to ensure that your loved ones are not left destitute as a result.

Be very careful with personal guarantees

If you own a company and you are a Director, as a Director you have a personal risk associated with this role. At the very least you should consider a family home trust. Whether you carry personal debt or you have your own business, you need to do whatever it takes to ensure that your home does not become a target for creditors seeking repayment. 

Take your family home out of the risk equation

The best way to do this is to take your home out of your name and place it in trust. As a business owner, you should also take precaution to separate professional and personal assets, but setting up family trusts is a good place to start. Should you fail to shield your assets, your family will be the ones to suffer additional loss, and there's no time like the present to start planning for the unexpected.

So why not learn more and register with TrustUs today.

After all, it's in your hands.