Your three safe havens to protect assets from insolvency:
1. Low-risk spouse (eg. spouse is a teacher)
2.‘Clean skin’ Family Trusts (eg. no employees)
With the downturn in the economy the Trustee-in-Bankruptcy has its eye on Super. The latest case, Morris v Morris, shows how desperate the Trustee-in-Bankruptcy has become - such underhand tactics puts greater risk on the financial planner.
Sure, after bankruptcy, the Trustee-in-Bankruptcy can’t touch your Super received as a lump sum. However, the Trustee-in-Bankruptcy takes your Super where:
- you transferred assets into Super to defeat creditors; and
- you, as a bankrupt, get pension payments from Super
Ask your financial planner:
- Why is lump sum Super protected - but pensions are lost if the beneficiary in the Will is bankrupt?
- Why are reversionary Pensions dangerous for Will beneficiaries with few assets?
- Five ways parents can protect their Super at death.