Asset protection


The preservation and safeguarding of existing assets are a general objective for any business and its owners. Business risks can only be undertaken to a certain extent, and there are few people who deliberately decide, at their own will, to jeopardise the entire property they have acquired before. The primary criterion in asset protection as one of the cornerstones of asset planning is to secure the existing assets against the claims of a third person. Trust has created an opportunity for people taking a high business risk, such as lawyers liable with their entire property or senior executives, to secure the property for the beneficiaries by putting some of it into trust. In addition to these two highlighted interest groups, trust may be an alternative for a marriage contract too, as the items placed into trust are separated from the own property of the settlor and the beneficiaries and do not qualify as joint property. By using carefully structured trust before marriage, the parties can prevent many unnecessary disputes and long-lasting litigation should they get a divorce. Furthermore, trust is a good means against fraudsters and swindlers. The mere fact that the managed assets are in the ownership of the trustee and the identity of the beneficiaries is not known publicly represents a sort of security, a firewall for the beneficiaries, who can enjoy the managed assets and their benefits without being exposed to the curious eyes or, in the worst case, the attacks of the external world.