RSM Australia

Why tax time is the perfect time to review your assets

Restructuring Insights

Think for a moment about everything you own: house, property, cars, caravans, stocks, bonds, savings, and more. Think about how long it took you – and how hard you worked – to get it.

Now imagine it all being taken away. In one fell swoop, all the wealth you have generated for yourself and your family is gone and you are back at square one.

Perhaps:  asset protection

  • You are forced to pay back someone else’s debt
  • Your relationship ends
  • A person who supports you financially passes away
  • Someone hurts themselves on your property
  • You get sick and go into debt with medical expenses

These may not be pleasant scenarios to think about, but the truth is they do happen. And they happen to people of all ages, from all backgrounds, and oftentimes as a result of an event that is no fault of their own.

In an instant, you could be asked to pay a significant amount of money to a creditor or other party via a lawsuit that requires the liquidation or transfer of your assets…leaving you with little, or none.

It takes more than insurance

It’s logical to reason that insurance should be enough to protect you in hard times. After all, isn’t that why we get insurance?

However, if you consider the scenarios above (and many more), there is no insurance that can protect against all the risks we face in life. And unfortunately, in some cases, even when you believe your insurance will cover a particular event, the fine print explains why it doesn’t.

The only way to properly safeguard against risk is with an asset protection strategy working in conjunction with the right insurance to keep your wealth protected.

When you need asset protection

Most people don’t have many assets when they are young – they accumulate debt (liabilities) as they buy cars and houses, and take out loans for education or to start a business.

But as life goes on, you may reach a point where you move from accumulating debt to accumulating wealth. This could be through sheer hard work and determination, a lucky win, an inheritance, or another wealth-creating event.

Your wealth could take many forms, but when you have it you will seek ways to protect it and make future plans to distribute it to those you want to inherit it.

This is the time to think about asset protection.

Your asset protection strategy

Asset protection involves examining your wealth and how it is distributed and implementing smart, legal strategies to protect it.

It is a specialised field so you will need to seek advice from a qualified asset protection specialist.

Our team at RSM:

  • Evaluate your assets and current risks
  • Devise a strategy to protect your assets
  • Develop smart practices to ensure the longevity of your strategy
  • Meet with you regularly to assess changes

An annual catch up with your asset protection specialist is the best way to ensure that your asset protection strategy is still relevant and effective.

So when tax time comes around and you’re booking in with your accountant, book in with your asset protection specialist too. A quick chat and simple review may be all that’s needed to know that you, and your family, are well protected.

To chat with a qualified asset protection specialist from RSM, please contact your local RSM office.

RSM offers asset protection strategies to help you plan for the worst