Looking After Your Family and Wealth Protection
What would happen to your family if you were no longer able to work, your business went bankrupt due to non-payment by a major customer, or worse, if you were killed in a tragic accident?
Every day these situations happen throughout Australia. Emotionally these events are terrible times, and if financial distress also happens as a result, the effects can be devastating for your family and can affect them for the rest of their lives. But you can put in place plans to financially protect your family if something goes wrong, including personal insurance to provide financially, asset protection strategies, business succession planning, and estate planning covering effective will strategies.
Personal insurance, such as life, TPD, trauma or income protection, can provide money to you and your family when tragedy strikes.
Asset protection involves protecting your hard earned wealth from situations where you could suffer a financial loss. For example if a customer was hurt on your business premises, and your public liability insurance company wouldn't cover you, your personal assets could be called upon. The same situation happens if you were to go bankrupt in your business, which could happen through no fault of your own such as a large customer not paying you. It is important to understand the risks which could cause you financial loss, and have a plan in place to protect your home, other assets and wealth.
Unfortunately the more money people have, the more wills are fought over, meaning when you pass away your dependants could lose a lot of money if wills are not carefully planned. This is called estate planning, and Kennas often helps liaise with solicitors to ensure people's wishes are carried out after they pass away, ensuring there is a smooth transition of wealth to dependants. We can even advise on ways to protect the next generation who inherits wealth from their own personal risks they may encounter.
As an example, one of the most common risks we see is people going into business who have a home. There are many more risks when you are in a business compared to being an employee, and business owners often get very concerned about the potential to lose their home if a business risk eventuates (such as business insolvency).
Kennas and Kennas Financial Services can assist with helping you protect your family's financial future, in case something does go wrong. We can help you consider a range of business and personal financial risks, and prepare a strategy to protect you from these risks as much as possible, taking into account strategy costs and strategy complexities.
Contact Brent or Peter for your initial FREE discussion on 4924 9100.
The 3 Key Steps To Protecting Your Wealth
The first step is to not put yourself in situations that may cause financial hardship. Make sure you understand best practices in how to manage a business and have a strong scorecard (management reports) system in place to rate how you are going. Have strong work place health & safety practices in place.
The second step is to insure against the risk, for example taking out public liability insurance with a reputable provider, or personal life insurance.
The next step is to quarantine higher risk activities, like running a business or commercial investment properties, from your hard earned wealth. This may involve using business structures to separate ownership, or using the benefits of asset protection provided by superannuation.