Whilst each engagement is tailored to the specific needs of the individual client, it will invariably include a review of:
- the family home, and the ownership structure through which properties should be held
- ownership structures for business ventures
- consideration of wills, deceased estates and the use of testamentary trusts
- segregation of risk and asset holding entities and individuals
Asset protection involves reviewing the personal asset structure of an individual and their personal solvency position, enabling the implementation of a risk management program that considers strategies to diversify, control or hedge potential risks to reduce personal liability and in extreme cases, bankruptcy.
Each Asset Protection and Risk Management (APRM) program is specific to the individual. The components of every APRM program are governed by the risk profile of the client, based on their lifestyle and risk tolerance. The assessment of the client’s personal risk profile is completely subjective. The assessment is used as a guide for determining the risk areas, identifying the source of a potential claim and then formulating appropriate asset management and defensive strategies.
Risk profiling is a technique used in risk management to identify risk exposures and provides the necessary information to decide how to diversify, control, or hedge potential risks. The drivers behind risk management are personal risk, business or industry risk and legal risk. Once the source of risk has been identified it is easier to develop an APRM program that suits that risk.
The best APRM programs are those that are simple and well documented, that find a balance between the personal asset protection needs of each client and the tax structures that provide the optimum tax benefit. The implementation of an APRM program requires consistency of application and regular monitoring. Ultimately any APRM program will depend on costs, lifestyle choices and risk tolerance.
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Identify your risk
Determine risk profile & current risk structure -
Determine solvency
Conduct of pre-APRM statement of solvency -
Review Current Structure
Review & document current assest & funds -
APRM program
Draft bespoke APRM Program in consultation with legal advisor & tax advisor -
Implement APRM
Implement APRM strategy -
Determine solvency
Conduct post APRM statement of solvency -
Monitoring
No APRM program is definite. Strategies must be monitored on a regular basis