The 4 Best Asset Protection Strategies You Should Know

- mksgroup

When business is humming, asset protection feels like a “later” job. When something goes wrong, it’s the only job. The trick is to get your ducks in a row before there’s smoke on the horizon. These are the four moves we help clients put in place every week.

Quick disclaimer: General info for Australian readers. Get advice from a professional for your situation before you act.

1) Pick the right structure and keep it tidy

What works:

  • Run the trading risk in an operating company. Keep valuable stuff: IP, brand & property in a separate entity.
  • Use a family (discretionary) trust with a corporate trustee for flexibility and separation.
  • Consider a service entity for staffing/admin so one drama doesn’t sink the ship.

Where people come unstuck:

  • Owning key assets personally “because it’s simple”.
  • Having an individual as trustee.
  • No paperwork: mixed bank accounts, missing minutes, no loan or licence agreements between related entities.

If it isn’t documented, it isn’t protected.

2) Let super and insurance do the heavy lifting

Superannuation is generally hard for creditors to touch (timing rules apply). An SMSF can be great, provided you play by the rules. Don’t try “last-minute” contributions to hide assets—that can backfire.

Insurance buys you breathing room:

  • PI / public liability for the big hits.
  • Key person & business interruption to keep wages and debt serviced after a shock.
  • Life/TPD/trauma so the family isn’t forced into a fire sale.
    Review cover and beneficiaries yearly. Structures change, policies should too.

3) Paper the deals and register your security

If your trust lends money to your trading company, or leases equipment to it, treat it like a third-party deal.

  • Put loan/lease/licence terms in writing on commercial rates.
  • Register security (PPSR) where it makes sense so you’re not behind unsecured creditors.
  • Keep IP (brand, software, content) in a low-risk entity and licence it back.
  • If property is involved, use a proper lease from the owner entity to the trading entity.

Director hygiene: minimise personal guarantees, understand Director Penalty Notices, and don’t trade while insolvent. Keep cash-flow forecasts and board notes current.

4) Plan for family and succession

A lot of wealth gets lost in avoidable family and estate issues.

  • Current will and enduring powers of attorney that match how your entities actually work.
  • Testamentary trusts for control and tax flexibility.
  • Buy–sell agreements (usually insurance-funded) with business partners so exits aren’t a mess.
  • If appropriate, Binding Financial Agreements via a family-law solicitor.
  • Maintain a simple “control map”: who steps in for each company, trust and SMSF if you can’t.

What asset protection is not

  • Shuffling assets to relatives for $1 when trouble starts.
  • A “trust” with no separate accounts, no minutes, no real control.
  • Fancy charts with no arm’s-length pricing or paperwork to back them up.

A simple 30-day plan

Week 1: List assets by entity, highlight what’s exposed, note personal guarantees and any DPN risk.
Week 2: Separate trading from ownership, appoint a corporate trustee, move valuable assets where appropriate.
Week 3: Put loans/leases/licences in writing and do the PPSR. Tidy trust minutes and any Div 7A items.
Week 4: Update insurance, check super/SMSF strategy, refresh wills/POAs, confirm buy-sell settings.

How we can help

  • Design & set-up: Companies, trusts, service entities, done properly from the start.
  • Compliance that protects: Minutes, distributions, Div 7A, STP and BAS on time, so your shields hold.
  • Docs that matter: Loan/lease/licence paperwork and PPSR, working with your lawyer where needed.
  • Succession aligned: Will, super, insurance and ownership all telling the same story.

Want to learn more about how we can help you with this topic? Get in touch today: hello@mksgroup.com.au


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