Protection of assets by means of structuring
Your business and personal assets should be structured in such a manner that creditors cannot get hold of your business or your assets. With structuring, we mean that your business must be registered in the correct vehicles and your assets should be held in legal structures where they are protected from attachment by creditors.
How does corporate structuring protect assets?
We can only touch on the subject as each situation is unique. The bottom line is if your assets are unprotected, meaning if they are held in the wrong entities in the wrong places, they are vulnerable to be attached by creditors, or you will lose continuity if something goes wrong or you will pay too much in taxes. If your business is legally structured correctly in vehicles that can give you the protection, you can go a long way of avoiding death taxes, income taxes and almost all attachment of your assets by creditors. There are several strategies and when we consult with you, we will give you the best advice that is unique for you.
Asset structuring in case of death
When you die, your assets form part of your estate. If you own the membership of your Close Corporation or the shares in your Company in your personal name and you have not protected the membership/shares, the consequences can be negative for you. It is important that your business is structured in such a way that death has a minimal impact on your assets and your business.
Asset structuring in case of difficult times
If you must liquidate your business or sequestrate yourself, you can lose all your assets. It is not necessary. Again, if you have let us structure your business and your personal assets for you, these problems can be avoided. It is important that you take these steps before difficult times happen and not when it happens or after it has happened, because by then it may be too late.
Corporate structuring to protect assets is one of the most important favours you can do yourself in your life. It is, in fact, not a favour, but a necessity.
We can assist with protecting your assets. Contact us for a consultation so that we determine how we can assist you.