Sep 23, 2020
Today, we’re going to be talking about asset protection with
Australia’s leading property tax strategist, Ken Raiss.
Asset protection is the use of smart legal strategies to protect
For instance, we’re going to discuss why people who own
properties in their own names are putting themselves at risk, and
why even homeowners, not just property investors, need to have
asset protection strategies in place.
Very few of us are taught about the importance of asset
protection, yet smart investors look for ways to protect their
assets from their creditors.
Hopefully, after today’s show, you’ll have a bit more clarity
about what you could be doing and should be doing to protect and
keep your assets so that you can pass them on later.
- What is asset protection?
- Safeguarding your hard-earned assets from litigation whether
eventually successful or not. Defending an action can be costly in
time, money, and emotionally.
- The world is becoming increasingly litigious.
- Many people are seeing the easy road to financial security is
to sue someone for their wealth.
- I have read that Australia is the 3rd most litigious society in
- In these uncertain times and with no-cost legal services
available many people are choosing to sue someone even if for
greenmail – to get something just to go away.
- Why should we be concerned about it?
- There are many instances of both legitimate and unscrupulous
- We should all do the right thing and have appropriate
insurances in place but sometimes this is just not enough for
- What do you say to people who believe this is just being
- You have a car accident before paying your overdue registration
and insurance due to a busy work week.
- Your house is underinsured and burns down and destroys the
next-door neighbor’s property. You are up for the underinsured
- Your child illegally downloads music or videos.
- You take on a new job with increase occupational health and
- You become a director in a business.
- Sometimes you are called a director but not on the ASIC
- You are responsible for all tax obligations plus the normal
- I heard a story a few years ago when a thief while running from
the police jumped a fence and fell into a hole that the homeowner
had dug for the garden. The thief injured himself and sued the
- Safeguarding the family wealth for current use and to pass down
to the next generation is not paranoid but prudent. The older you
get the harder it is to rebuild so why risk the twilight years
after a lifetime of hard work
- Typical Strategies and Mistakes
- Typically, people go and see their lawyer for these strategies,
but the lawyer does not understand the accounting, taxation, and
estate planning intricacies that all must be built into the final
- I see many people who have transferred their assets to a trust
which for investments is reasonable but there is a cost in relation
to capital gains tax For property there is also the potential
increase taxes in relation to land tax and the foreigner’s taxes if
they have overseas relatives.
- They also ignore the impact on the family home. In a trust,
they lose the main residence exemption and will be subject to land
- You need an integrated approach that looks at the legal,
taxation, accounting, estate planning and future changes to your
life needs when looking at an appropriate strategy.
- We have seen many clients implement strategies, but the
majority have only looked at one aspect of the total picture and
have therefore left holes that can be exposed which reduces the
overall effectiveness of the strategy. They have done the work to
identify their concerns, have found a solution only to be let down
in the execution.
- At Metropole
Wealth Advisory we have four different strategies that can help
people and in all cases, no taxes are triggered. You can also
protect the family home and keep the main residence tax benefits in
relation to CGT and land tax.
- The most appropriate of the four strategies is identified for
your specific needs and as your life circumstances change, they can
- Each of the strategies build on a solid foundation looking at
tax, accounting, estate planning future flexibility, and with the
added benefit of adding a layer of asset protection for your family
wealth in case of litigation.
- The benefit of the Metropole Wealth
Advisory way is we look at all assets including the value of
wealth in your trusts or companies.
- How Should People Go About Protecting their Assets
- Typically, these are ignored due to the tax implication but
there are solutions when taking an integrated approach.
- The wealth in these structures is incorrectly perceived as
being safeguarded. This is not the case if the tenant in an
investment property sues or a customer sues a business. The value
is protected if you are individually sued but the other risks
within the structure can be greater. It is like the trojan horse,
if the attacker is inside the gates they can strike.
Links and Resources:
Raiss, director Metropole Wealth
Have a chat with Ken Raiss to ensure you have the correct asset
protection strategies in place – click
In turbulent times like this why not get the team at Metropole
on your side – find out more
Shownotes plus more here:
The right and wrong way to protect your assets with Ken
Some of our favourite quotes from the show:
“Your assets, your personal assets, things you own, are at risk
for other people taking them.” –Michael Yardney
“The lawyer was right, legally. The accountant was right
numbers-wise. The financial planner did the right thing. But the
left hand doesn’t know what the right hand is doing.” – Michael
“When things happen in life, things that we don’t like, we can
either choose to see them as a problem or as a solution waiting to
be discovered.” – Michael Yardney
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