Why Using The Services of Asset Protection Consultants Can Be Beneficial

November 3, 2004
By Monish Datta

Designing your overall plan and preparing the documents necessary for asset protection, tax efficiency, and estate planning must take place under the guidance and supervision of Asset protection consultants who specialize in these matters.

A successful strategy involves a careful analysis of your business structure to make sure that potential liabilities are properly controlled with Dangerous and Safe Assets insulated from each other.

The operation of your business or professional practice should be evaluated to minimize taxes through specially designed individual strategies. Asset protection and estate planning choices and alternatives should be presented to you and clearly explained so that you can make sound and informed decisions

Consultants should assess personal exposures in complete confidence and agree on a strategic plan to protect your assets and take any corrective action. Thereafter they should help you to implement your strategy and if required deal with the other professionals on your behalf to ensure they deliver.

The expertise of a consultant should include, but not be limited to, advice on how to avoid breaching regulations and minimise the likelihood of actions by company liquidators, government departments (Inland Revenue, Companies House and Department of Trade & Industry) and creditors.

Critical exposures are personal guarantees, company loans, company assets in which there is personal interest, failure to pay Crown Departments, trading whilst insolvent, preferential payments, maintaining and preserving proper accounting records, records of meetings and decisions, evidence in disputes, securing continuation of the business and where appropriate, securing the business name.

Your asset protection plan must be created in advance of any claim or threatened litigation. Every state has laws prohibiting the transfer of assets to avoid paying existing or anticipated claims. If you make a transfer when you know or have reason to believe that there may be a case against you, the other party has the right to set aside the plan. Make sure your consultant addresses your asset protection needs before difficulties arise in order to accomplish the best results.