Asset Protection Strategies & Trust
Business & Commercial
Preventative Asset Protection for Business Owners and Professionals
Protect what you have built with clear, proactive asset protection. At Burgess Thomson, we design and implement legally robust asset protection frameworks for founders, company directors, investors, medical and allied health professionals, builders, consultants and families.
Our focus is simple: put the right asset protection strategies in place early, so that a dispute, claim or business setback does not jeopardise your home, savings or long-term plans.
Why Asset Protection Matters
A sound asset protection plan separates risk from wealth. Without one, a single adverse event (like a contract dispute, professional negligence allegation, personal guarantee call, insolvency in a related entity) can quickly expose personal assets. Effective asset protection strategies create legal and practical barriers so claims are contained where they arise, rather than spreading to everything you own.
Key principles we apply:
- Separation of risk and ownership: keep operating risk in the trading entity and long-term wealth in a different structure.
- Documented arrangements: ensure loans, licences and service agreements reflect reality, so your asset protection position stands up to scrutiny.
- Timing and intent: restructure early; last-minute transfers risk being set aside as creditor avoidance.
- Alignment with tax and estate plans: your asset protection strategies must work alongside your tax, superannuation and succession documents.
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Asset Protection Strategies We Use Most
Every client is different, but the building blocks of effective asset protection strategies typically include:
1. Trust structures (including an “asset protection trust”)
A discretionary trust (sometimes called an asset protection trust) can hold investment assets while a separate entity carries trading risk. Because beneficiaries do not own trust assets personally, claimants against an individual beneficiary generally cannot seize trust property. We advise on:
- Establishing a tailored asset protection trust (discretionary or hybrid)
- Selecting a prudent trustee and appointor
- Drafting robust distribution, indemnity and replacement provisions
- Keeping trust records and minutes that support your asset protection position
Note: “asset protection trust” is a functional description in Australia rather than a special statutory vehicle. Suitability depends on your circumstances, and family law or tax rules may affect outcomes.
2. Companies and corporate groups
We ring-fence operating risk inside a company while holding valuable IP, plant or real estate in a separate entity. When paired with well-drafted inter-company licences and service agreements, this is one of the most reliable asset protection strategies for active businesses.
3. Personal ownership planning
Where a primary residence is concerned, it may be safer for the lower-risk spouse to hold legal title (subject to advice). We also review existing loans and guarantees so your asset protection plan reflects real-world liabilities.
4. PPSR security and documentation
If you (or a related entity) fund equipment or working capital, we prepare and register security interests on the PPSR. Properly perfected security can elevate you from unsecured creditor to secured party, which is an impactful asset protection tactic.
5. Insurance as a financial backstop
Insurance does not replace structural asset protection strategies, but it is essential ballast. We coordinate with your broker on professional indemnity, management liability, cyber, public liability and income protection so cover aligns with your legal structures.
6. Estate and superannuation alignment
We integrate asset protection with wills, enduring powers and superannuation nominations. Trust-owned assets do not pass by will, and superannuation is governed by fund rules. Misalignment can unravel otherwise strong asset protection strategies.
Asset Protection Trust: Benefits and Limits
An asset protection trust (well-designed discretionary trust) offers:
- Ownership separation: assets are controlled, not personally owned
- Distribution flexibility: tax and cash-flow efficiency across family members or entities
- Continuity: assets stay within the structure despite individual life events
Limits to consider:
- Family law exposure: trust assets may still be considered in property settlements
- Director and guarantor risk: personal guarantees and penalties can bypass structures
- Record-keeping: poor administration can undermine asset protection outcomes
- Tax complexity: distributions, streaming and CGT require careful management
Why Burgess Thomson?
- Commercially grounded advice: structures that work in daily operations, not just theory
- End-to-end delivery: from design to deeds to registrations, we manage the details
- Clear drafting: plain language with precise legal effect
- Coordinated approach: we work with your accountant, broker and financial adviser to ensure your asset protection is cohesive
Speak to an Asset Protection Lawyer
Whether you need a fresh structure for a start-up, a review for a growing practice, or a comprehensive plan with an asset protection trust, we can help. Talk to Burgess Thomson about tailored asset protection strategies that separate risk from wealth and safeguard your future.
FAQ's
Won’t my insurance cover it?
It is important to understand the terms of your coverage to determine the risk you face. Insurance does not cover everything. Even if your insurance seems to cover it, there might be an exclusion in the fine print you were not aware of. Regardless of your insurance, protecting your assets is a must.
Will this cost a lot?
When viewed relative to the potential liability you could face under an action against you, it is a small price to pay. Changing the name on the Certificate of Title of your property will cost less than $200 to lodge the necessary documents, plus any associated legal costs. Setting up a Family Discretionary Trust is more costly, however does have notable tax benefits. In NSW the initial costs to set up the fund range from $2,000 – $3,000 plus stamp duty, maintenance costs and associated legal costs. This is a small investment to prevent you from losing everything you own.