Asset Protection Strategies
How do you control what happens to your assets? What happens to your personal assets, like your family home, if your business fails? How will you ensure that your personal life is not affected when, and if, you find yourself facing a “worst case scenario” in your business life?
An appropriate asset protection strategy requires an in depth understanding of your, and your family’s, financial position. There is no single correct answer for asset protection. It may be that the creation of a trust with a family company appointed as trustee is the appropriate solution for you. It may be that a re-evaluation of your family company’s structure is required. We can offer you advice on how to manage your business in such a way that you will not be exposed to any risks.
Having an appropriate asset protection strategy that has been tailored for you and your situation is a necessity for anyone in business. Our business law and commercial team are professionals and would be pleased to share the benefit of years of experience and plan an asset protection strategy with you.
A unit trust is a particular type of legal arrangement that functions in a similar way to a company. Unitholders in the unit trust derive income from the trust often in proportion with their unitholding. The advantage of a unit trust over a company is that unitholders may obtain tax benefits under a unit trust arrangement that shareholders in a corporation would not.
Unit trusts can be complex arrangements and we assist our clients with establishing unit trusts.
A fundamental part of the business of many of our commercial clients is securing capital so that their business can continue to grow. Often this involves securing a loan whether it is from one of the large banks, a smaller lender, or even a family member.
We draft Loan Agreements from scratch and have often been asked to do so for clients. We review Loan Agreements that have been presented to clients. When presented with a loan agreement we advise our clients of the implications of the terms of that agreement so that they are better able to make a decision as to whether to enter into that agreement or not.
It is important that any parties to a loan agreement including lenders, borrowers, and guarantors understand and accept their responsibilities under a Loan Agreement at the same time as they accept the benefit of the agreement. Our advice will ensure that you can be confident of the contents of Loan Agreement before you sign it, and that you can be clear about your obligations after you sign it.
Bankruptcy is the process where a creditor of a natural person can have a trustee appointed to manage the bankrupt person’s estate to pay out the creditors of the bankrupt person. If you are made bankrupt you will face a number of restrictions including your ability to be a director of a company, work in certain professions, and travel overseas.
The “winding up” of a corporation is a similar process to that of bankruptcy. The creditor of a company can apply to the court and, after the creditor has passed a number of procedural steps, a liquidator may be appointed to sell the assets of the company and if possible pay the company’s creditors. Sometimes the path is not so simple for creditors, though. The Corporations Act allows for a number of alternatives to winding up. The appointment of an Administrator or the entering into a Deed of Company Arrangement are examples of available alternatives.
We have extensive experience in acting on behalf of individuals faced with bankruptcy proceedings and companies who face winding up proceedings.
The insurance industry is, fundamentally, an industry that deals in “worst case scenarios”. Holders of insurance policies may find themselves in a difficult position after a car accident, moving into a poorly built home, or an outdoor music festival being rained out. When worst case scenarios happen insurance policy holders rely on their insurance policies to help out with the damage they have suffered.
Sometimes insurers resist claims made by policy holders and disputes arise. We assist our clients with making insurance claims and, if necessary, pursuing insurers who seek to avoid their obligations.