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Risky Business: How Business Owners Are Putting Their Family Home At Risk, Without Knowing

As a business owner, there are plenty of things you need to manage, and two of the most important of these are assets and risks. 

You want to build your wealth through asset accumulation. You must also ensure these assets are not exposed to risk.

There’s no point building a lot of wealth if behind the scenes you have things structured in a way that means someone could take your assets away from you

Sadly, many business owners are in precisely this predicament, without knowing it!

Build a Wall. 

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Consider these facts…

• Your business faces unpredictable risks through interaction with employees, customers/clients and creditors.

• This means there is potential to be sued by a variety of parties. Where there are agreements in place, sometimes disagreements later result. This is life. It makes sense to accept that, and plan and protect yourself, rather than hope it never happens.

• Litigation, sadly, is increasing each year, largely driven by lawyers offering ‘no win, no fee’ services.

• This encourages people to take legal action. They have nothing to lose, after all.

• This means you need to ‘build a wall’ between your business risks and your personal assets otherwise you risk losing it all.

• This ‘wall’ protects you and your family from losing assets such as your house or personal investments, if your business was to be sued.

• The wall is created by strategic use of companies and trusts, and also deciding who within a married couple, for example, should and should not be a Director of each company. One seemingly simple mistake in this area can cost a family their house.

This all presents significant risk. So what can you do about it?

If you haven’t looked at your asset protection structure in the past 12 months, you need to make that a priority.

As your life changes, your asset protection strategies (your ‘wall’) need to be checked that they are still appropriate. 
Your asset protection should be reviewed annually. We also ensure your Wills and estate planning are in order. Remember, the standard type of Will can bring down your ‘wall’.

In addition to Wills, there are other important documents to have in order such as an enduring power of attorney. This gives someone else—the person you choose—the power to make personal or financial decisions on your behalf.

It is far more common for someone to become incapacitated through accident or trauma such as stroke, than it is to suddenly die. If this happens to you, you may not be able to communicate your wishes and make decisions when you need to.

The consequences of this are dire and tragic.

It’s all about choices and about ensuring you protect your family and your assets.

Without sound asset protection and effective Wills and estate planning in place, the legacy you have been working so hard to build may not end up in the hands of the people you intend.

The potential distressing nature of this type of scenario is why we feel so passionate about asset protection and estate planning…

Tony Rule, partner at TAG Financial Services says, “Over 90% of our new clients have been severely neglected in this area. People think that your traditional accountant covers this topic but in reality it’s a specialised advisory field. There is little point dealing with these matters when the need is at the door. You need to act today!”

Your next step…

Call Tony Rule on 03 9886 0800 or email tonyr@tagfinancial.com.au to make a time to meet and discuss your options.

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