Recently, on the Reimagining Healthcare podcast with @YianniSerpanos, I answered the question “When should somebody be thinking about asset protection when starting a business?”
There are a couple of things to consider. When you have a director of the business (the person running the business) we actually don’t like them holding any personal assets in their own name.
Let’s say the business is sued and they’re successful. Then they end up suing the person personally. We don’t want to have that family home lost or any other investments in their own name. As an example, that can all be structured through a spouse’s name or in company or trusts that are set up well for the family.
The second part is also making sure your estate planning incorporates all these things. Estate planning is more than just a will. You need to consider what happens with company assets, trust assets and what happens with the super.
In terms of a good time to have that all in place, you should absolutely have that in place before you go into business. And, you need to check that it still makes sense as you start setting up all the structures and running up a business as well.
It’s quite complex stuff. You need to be working with an accountant who understands all this. They don’t need to do the actual estate planning themselves, but they definitely need to understand and work with the lawyers on how it all works.
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