Asset Protection – An easy decision
In many countries around the world, people whose assets might be vulnerable to future attack (from creditors, legal suits etc) use Asset Protection Trusts. These trusts protect against future financial risks and from those who might want to attack your accumulated family wealth. Typical clients include successful property developers, business owners and surgeons.
How does it work?
Setting up a Trust has been possible in the Czech Republic since the beginning of 2014. All that is needed is a trip to the notary to sign some documents to establish your trust. Once the trust is established, then your important family assets; houses, cottages, investment portfolios etc. can be transferred into it.
What is important to understand is that once assets have been placed in the trust, they are no longer yours. That means that if, in the future, you are sued or go bankrupt, those assets are no longer your property and should no longer be available to potential creditors and other claimants. In fact, under Czech law, the assets are then technically considered not to belong to anyone. Of course during all this time, you and your family can continue to control and to benefit from the assets and to use them – for example to live in your house. And this applies even after you are declared bankrupt. Using a Family Asset Protection trust is a very simple way to protect your family and your lifestyle in the event that the worst happens.
Another benefit applies in the unfortunate event something happens to you personally. Again, because the assets are not ‘yours’, they do not pass with your inheritance – instead they will pass on to whoever you specify or can be retained in the trust for the future benefit of your family.
How do I set up an asset protection Trust?
It is critically important that the trust is correctly structured to ensure that it complies both with current Czech law and likely or possible changes to the law in the future. In particular, the trust needs to be robust and designed so that it can resist any possible attack from creditors and others. This is not a ‘DIY’ job and professional help is always needed.
For anyone working in a riskier sector, and considering setting up an asset protection trust, you are welcome to meet with us for a free initial consultation meeting in either Czech or English.
If you do decide to set up an asset protection trust, you will be making a very worthwhile investment in your family’s future.
