1. Do Something Now. It is harder to protect yourself after a liability has been incurred, long term planning is the key to asset protection.
2. Liability Insurance is your first line of defense, buy every £ you can afford whilst assuming that it won’t work so you have a back up plan;
3. Use Incorporation as a liability firewalls. Always divide and segregate your personal & business assets (and liabilities) as much as possible. “
4. Don’t assume that incorporation will afford you complete protection. If you own it, run it, control it, it can be argued that it is still YOU;
5. Get professional legal & accounting help to organise your assets and make sure you maintain the legal formalities of these entities like tax returns, meeting minutes and separate bank accounts or they won’t help at all;
6. Get your vehicles out of the name of your business. Many people do this for the deduction. If you or your spouse injures someone with your car you have created a “bridge” to your business and all it owns. Take a vehicle allowance instead;
7. If you have employees get professional employment manuals, policies and dispute resolution agreements in place. A small investment will cover your business and family for years. You are five times likely to be sued by an employee than anyone else;
8. Be nice to everyone as a rule. During difficult economic times people are much more likely to take legal action, whether justified or not. Your bedside manner will play a role in their emotional decision to sue you;
9. Don’t keep too many eggs in one basket. Don’t use a single limited company, for instance, to own separate assets like 3 different rental income properties with high equity. An injury or exposure at one property or business places the owner, the company and its assets potentially at risk;
10. Own Nothing, Control Everything. You don’t need to keep assets in your own name to use, control and enjoy them. Make use of trusts, corporate shells and the law to transfer title to assets away from you.
Henderson Morgan’s Wealth Management team has over 20 years of experience of working with clients to protect their assets and grow their wealth please contact us at advisor@henderson-morgan.com for a free initial consultation.
