Raymond Khouri CA Limited

Asset Protection & Estate Planning

Asset protection planning shouldn't be left until old age. To get the greatest benefit you should start asset planning early in life, when you begin accumulating assets.

An asset protection plan will outline your current position and identify risks to which your major assets are currently or could be exposed. It will explain the legal and financial tools that are available to deal with those risks, and recommend a suitable strategy.

We can help you develop your strategy and provide ongoing guidance for you. We work closely with your lawyer to implement the plan.

Risks to which your assets are exposed

You will probably go through several financial stages in your life:

• Buying a house and taking on debt.
• Creating wealth through paying off debt and saving.
• Consolidating wealth through saving and investing for growth.
• Drawing on investment income in retirement.
• Transferring any remaining wealth to the next generation.

Initially, asset protection is simply ensuring you have sufficient insurance to cover your mortgage, loss or damage of your car, home and contents. The need to safeguard your income and quality of life becomes greater as your wealth accumulates and your responsibility for family members increases. Asset protection planning ensures that your assets are protected and that you and your family are able to enjoy financial security.

Asset planning tools

Wills

A will is a very important document. It instructs what to do with your estate when you die. If you already have a will, you should review its terms with your solicitor to ensure that it still meets your wishes and includes all your assets. If you do not have a will, you should arrange for your solicitor to prepare one as soon as possible.

Enduring powers of attorney

An enduring power of attorney allows those close to you to make decisions on your behalf if you become incapable of looking after your affairs because of accident or illness.

If you do not have an enduring power of attorney, those close to you will need to apply to the Court in order to make decisions regarding your personal care, welfare and property. This is expensive and could cause delays at a time that is already stressful.

Family trusts

To protect your wealth from creditors, relationship property claims, income testing and estate duties.

Insurance

Income protection insurance pays a percentage of your regular income in the event of your disablement or serious illness. While you would suffer a drop in income, you would retain your home, and other assets including any investments and savings which you have accumulated.

Critical illness or trauma insurance pays a lump sum on diagnosis of an illness or at the time of a traumatic event, such as heart attack or stroke.

Total and permanent disablement insurance provides cover for severe long-term disablement. It usually requires a stand down period of six months before payment to enable the insured person’s condition to stabilise.

Life insurance provides a lump sum payment on the death of the person insured, so that major financial commitments can be met. The life cover can be reduced as your long-term debt reduces and your investment or retirement plan reaches completion.

Investment planning

Effective investment planning is an important part of your overall asset planning strategy.

Your investment plan will change throughout your life. Reducing your house mortgage will be important in the early part of your working life. Once this debt is out of the way you should invest as much as possible in a well-diversified investment portfolio or superannuation scheme while you are still working.

Life expectancies are extending and nowadays, a 60 year old can expect to reach 75-80. This means accumulating enough money to sustain you for 20 years or more in retirement.

Tax planning

By organising your affairs in a more efficient way, you may reduce your tax and save more for retirement.

We recommend that you obtain advice specific to your circumstances. Please click on Contact Us to arrange a consultation.