Growing and protecting your wealth

Commonly asked questions about wealth protection

We live in an increasingly litigious society. Litigators are becoming more and more aggressive. In fact, Australia is recognised as the second most litigious country in the world (after the United States). People can become defendants in lawsuits in which substantial damages are sought against them, through no fault of their own. Quite often, insurance is either unavailable or inadequate. It is not uncommon for the cost of defending a claim, let alone the cost of satisfying the claim if you lose, to be financially crippling.

Also, Australia is among the most highly regulated countries in the world, with virtually all business activity being the subject of state and/or federal government regulation of one kind or another. Some regulation is so complex that maintaining total compliance at all times is virtually impossible. The penalties imposed for failing to comply with regulations can also be financially crippling.

  • Claims made by a former spouse, or de facto partner, following a relationship breakdown
  • Claims made by disgruntled business associates or employees
  • Claims arising out of a person suffering a serious illness

These risks can arise out of circumstances that are neither foreseeable, nor involving illegal or self-destructive conduct. They can arise out of the everyday activities of people going about their business.

Everyone should have strategies in place designed to protect their wealth. But some people are more obviously in need of wealth protection strategies than others. These people include:

  • The very wealthy
  • Those in the public eye who have some degree of celebrity status. Often, people such as these are seen as prime targets for overzealous litigators and regulators
  • People who have a concern or suspicion that they may face some form of legal, financial or even medical difficulty in the not too distant future
  • People who own a business, or who are engaged in a professional occupation. Any business owner or professional practitioner is at risk of being sued

Importantly, there is no one-size-fits-all wealth protection strategy. Each person’s particular circumstances need to be carefully reviewed, and a strategy developed that is appropriate for those circumstances.

Some strategies that often form part of a wealth protection plan are:

  • Using companies and trusts to quarantine assets that involve an inherent degree of risk.
  • Ensuring that active assets (such as a business) and passive assets (such as a share portfolio or real estate investment) are owned by different entities
  • Giving inherited wealth to your beneficiaries and receiving inherited wealth from your benefactors through testamentary trusts
  • Skilful use of debt and securities, particularly debt and securities involving companies and trusts in which you have an interest
  • Structuring the appointment of company directorships within a family group to limit the family group being exposed to risk arising out of directors’ liabilities
  • Strategic use of superannuation and insurance
  • Developing agreements to deal with the orderly succession of business ownership after critical events such as death, disability and voluntary retirement

There are many strategies for building on the wealth that you already have, such as investing in property or shares, taking advantage of certain superannuation options, or setting up trusts. Receiving professional advice can help you to understand any taxation implications and minimise risks when you are making important financial decisions.

Our experts

Postcode

News

If a person with a secret second family dies, who inherits their estate?
30 Sep 2021
It’s a classic plot in movies and novels – a man dies, leaving his family to...
Read More
Does marriage or divorce automatically revoke a will?
28 Sep 2021
Did you know if you were to get married and then die soon afterwards, the fact ...
Read More
The reverse mortgage – one of life’s gambles?
23 Sep 2021
With the government encouraging self-funded retirees to tap into their home’s ...
Read More
Can my ex claim part of my lottery winnings?
15 Sep 2021
If a couple separates and one of them wins lotto, can that person be legally ...
Read More
If I cover up a murder, can I inherit from the victim’s estate?
18 Aug 2021
You’d think the law would be clear – if a person is convicted of murdering ...
Read More
Pressure grows to make voluntary euthanasia legal in NSW
12 Aug 2021
Legalising voluntary euthanasia, or voluntary assisted dying, is a hot topic in ...
Read More
Business email compromise scams conning Australians out of millions
04 Aug 2021
According to the Australian Federal Police, more than $79 million has been lost ...
Read More
Family provision claims in NSW – spare us the details and curb your expectations
03 Aug 2021
Each year, Sydney barrister Gregory George writes a summary of decisions ...
Read More
The vital importance of a business exit strategy
20 Jul 2021
We are often asked by clients when is the right time to start planning their ...
Read More
When the second wife beats the kids to the inheritance
15 Jul 2021
A classic conflict scenario over a deceased estate is when the second wife ...
Read More
How to contest a Power of Attorney or Enduring Guardian in NSW
29 Jun 2021
When you appoint an Enduring Power of Attorney or an Enduring Guardian, you are ...
Read More
Revoking a Power of Attorney or Enduring Guardian in NSW
24 Jun 2021
Sometimes circumstances change and you may find yourself having to consider ...
Read More

Why Stacks

No hidden fees
Nobody likes surprises on their bills, so we take the time to agree with you exactly what our work will cost before we do it (not after!)
Deep expertise
Our lawyers aren’t ‘general practitioners’, they’re experts in their chosen fields of practice (many are Accredited Specialists)
Practical advice not legalese
We provide clear, practical advice, in plain English, so that you can make decisions with confidence
Over 25 local offices
Our local offices are owned and operated by friendly, local professionals, who are proud and active members of the communities they serve
Real client care
Genuine care for clients has been at the core of our practice since the first office was opened by ER Stack on the NSW Mid-North Coast in 1931
Progressive practice
We invest in technology and systems so that our services are always cost effective and clients are in control of their own legal affairs

More about our promises

Get help now

It's easy to get help, just tell us your story and we'll help you understand all your options. If you’d like us to help, we’ll agree exactly the work you'd like us to do up front so that you can be certain about our costs.

Your enquiry is completely confidential.

Complete the form and one of our experts will get back to you within 24 hours.

Reach out

Fill out this form and one of our local law professionals will be in contact

By submitting this form you agree to the terms of our Privacy policy