Individuals who have built up sizeable assets, equity and savings, should consider asset protection strategies before any claims to their wealth arise.
A key part of advising any high net worth individual will be ensuring that their personal balance sheet is protected from financial ‘predators’ in their lifetime – business creditors, divorce, bankruptcy, inheritance tax and more.
Asset protection can help you maintain your standard of living and preserve your ability to pass on wealth and assets as you choose as part of a legitimate approach to estate planning.
There is however no single, winning formula.
Effective asset protection requires substantial tax, legal and risk expertise, in order to draw on the full range of financial tools to meet your individual needs.
Here to help
ETC work with businesses and high net worth individuals on all aspects of asset and wealth protection.
We will devise a tax-efficient plan designed to separate and protect your portfolio of assets from external financial threats – be that business creditors, a former spouse or the taxman on death.
We advise business owners across all sectors, as well as individuals from occupations considered to be at relatively high risk of litigation, such as medical and legal professionals.
Non-UK domiciled individuals that are resident in the UK are likely to have established non-UK structures as a vehicle for their assets. We are experienced in reviewing such structures and making sure they remain fit for purpose.
Being non-UK domiciled in the UK for tax purposes can have significant advantages from a UK tax perspective – whether this is in relation to access to the remittance basis of taxation for income tax and CGT purposes, or the fact that you will only be subject to IHT on UK assets.
One of the ways commonly used to protect assets is to set up a trust. We can advise on the suitability of the various types of trusts to allow you to preserve your assets for the benefit of your loved ones.
However, trusts are only one type of vehicle and we are also able to provide advice in relation to Family Investment Companies (“FICs”), family partnerships and also foundations – a vehicle which becoming more common, having only really been the preserve of those living in civil law jurisdictions.
We are also highly experienced in advising individuals and businesses on cross-border estate planning strategies, where complex financial arrangements exist both in the UK and overseas.
Your approach to asset protection should be reviewed on a regular basis. Changes in your professional and personal circumstances will need to be accounted for to ensure continued effectiveness. In addition, changes in the rules and legislation governing asset protection – of which there are many – will demand exceptional reviews to be undertaken to guarantee compliance.