Protect Assets from creditors – will a Trust help?
Trusts can be useful to protect assets from creditors. However, the Bankruptcy Act does give the Courts substantial scope to go back and undo any arrangement which the Judge decides was make with the deliberate intention of depriving creditors of their rightful debts.
Too late for a trust to protect your assets?
So if you already have significant debts, or you are aware that Court action is about to be taken against you, it is not likely that an asset protection trust will fend determined creditors off.
Where do Asset Protection Trusts give protection against creditors?
Clearly, asset protection trusts can be of great benefit to people in hazardous occupations such as doctors, financial advisers, surveyors – indeed anyone whom other people rely on for advice – and might sue if the consider the advice to be wrong many years in the future. Many professionals have to maintain expensive professional indemnity insurance after they have retired, often for life.
Estate Planning to protect assets and more….
A Trust won’t solve all problems, but it can form a useful part of a proper Estate Planning exercise which – if carried out early enough – can provide substantial protection for assets against future creditors.
But please do be warned, we will only advise within the parameters of what is legal and above board, and if your problems are pressing, you may need to seek the advice of an Insolvency Practitioner to get things back on an even keep before we can get to work to secure you against future problems.
If you would like a brief informal chat about protecting assets against future creditors, give us a call on 01323 741203.