Protection of Your Assets From Creditors
I work with many Canadian physicians, professionals and business owners in the Saint John region, where my main office is located, and throughout New Brunswick, Nova Scotia, PEI, and Ontario. Prior to consulting with me, many of their personal retirement portfolios did not have adequate creditor protection.
No one ever thinks they will need it, but if you are running a business, investing in real estate, have a big mortgage on an expensive home, or you are carrying any other debt, there are just too many things that could go wrong (in the economy, your personal lives, your job, your industry, changing government regulations…etc, etc) to allow your home and retirement funds to be at risk.
Real Life Example Where Creditor Protection Saved a Home and Retirement Portfolio…
In 2011 I met a very successful businessman who’s business had taken a hugh downturn and he was on the hook for $ millions in personal guarantees to Banks and some of his largest suppliers…with little creditor protection in place.
He had a very significant RRSP portfolio as well as a fully paid family home…but no real asset protection to protect them. Although no actions had been started by any lenders as yet, the writing was certainly on the wall, so to speak, if the business did not improve.
Canadian Asset Protection Strategies
I suggested to him at that time that he should put the deed to the family home in his wife’s name only (as she had not guaranteed any of the company debt) and to shift all of his RRSP (which were with a stock broker) to one of the Life Insurance companies that I represent and name his wife as the beneficiary.
He followed both recommendations to protect his assets.
A year later all loans were called by the lenders.
As a result of our planning he got to keep his home as well as his RRSPs.
Many physicians have their personal investments with MD Management or Brokerage firms…and very often, have no “creditor protection” on these investments. Other professionals are in similar situations. Here’s an article from a few years back by an Ottawa Lawyer re: why asset protection in Canada is an increasing concern to professionals: Asset Protection In Canada: An Increasing Concern to Professionals
Contact me by filling out the form here to discuss how I help you protect your home and retirement investments from creditors if something goes wrong in the future.Many business owners are busy running their businesses without taking the time to make sure their hard earned assets are protected.