Wealth Protection

"Bankruptcy hits home" by Peter Bobbin
Now is a particularly good time to review wealth preservation strategies. Changes to the Bankruptcy Act, proposed or adopted in 2006, have turned much traditional asset protection thinking upside down. New ways of thinking are needed if holding wealth to and beyond retirement is to be achieved. Originally published in Asset Magazine, February 2007.

"Frontline: the family home,” by Stephen Mullette
The Cummins case will already be familiar to many - bankrupt barrister, didn't lodge a tax return for 45 years, transferred assets to his wife and family trust, bankruptcy trustees had to go to the High Court to get the assets back. The tax avoidance and abuse of the Bankruptcy Act caught everyone's attention, and led to recent reforms to the Act. In this article, Stephen Mullette discusses the asset protection element of the High Court's decision. Mr Mullette explains the significant ramifications not only for bankruptcy trustees, but also professionals in their own arrangements and those offering advice, including financial planners, lawyers and conveyancers. Originally published by The Argyle Partnership - Lawyers in May 2006. This article was published in CCH on 29th May 2006.

"Mochkin - a man with appeal" by Peter Bobbin
Levi Mochkin was a proper authority holder of a financial services business. He structured his affairs via two Family Trusts. The Tax Office claimed that the money paid to the Family Trusts was actually Personal Services Income and therefore Mr Mochkin was personally liable for income tax. Before the Full Federal Court, the Tax Office and Mr Mochkin were each partially successful. The key was the original purpose behind the creation of the Family Trusts. In this article, Peter Bobbin explains the Court’s decision, along with its ramifications for financial services licensees. This article originally appeared in the October 2003 issue of Asset magazine.

"The Real cost of extramarital affairs" by Nabil Wahhab
Legal planning, financial planning and estate planning are pivotal to the preservation of wealth and peace of mind. This is more so when spouses have extramarital affairs of some permanency. In this article, Argyle Partnership partner Nabil Wahhab explains the circumstances under which a lover or ex-lover might have a claim under the Property (Relationships) Act NSW, Family Provision Act NSW and related legislation. The article was initially published in LexisNexis Butterworths’ Retirement & Estate Planning Bulletin, June 2005.

"Trusts: A 21st Century Look at a Centuries Old Tool" by Peter Bobbin
Without doubt trusts are the most favoured investment and business vehicles today, yet most professionals have completed less than 40 hours formal education in the law of trusts and taxation of these. In this detailed paper, Mr Bobbin presents the fundamentals followed by discussion of stamp duty, estate planning, family law, and taxation issues relevant to the law of trusts. Useful 'Practice Points' are given throughout this article. Updated May 2008.

"Trustbusters: Asset protection and the art of the alter ego entity - the Richstar decision" by Stephen Mullette
The Federal Court decision in ASIC v Carey (No 6) (“Richstar”) has caused some consternation amongst those who have long sought the shelter of discretionary trusts for protection of assets from the reach of creditors. Stephen Mullette provides a comprehensive analysis of the Richstar decision, from the dual perspectives of asset protection structuring and insolvency practice. Originally published in Australian Insolvency Journal, January-March 2007.

"Wealth Protection Strategies: make the house call your choice" - an interview with Andrew Ireland
Since the collapse of United Medical Protection ("UMP") in 2002, the Australian medical profession has been rocked by uncertainty as to the level of protection that the defence funds have the capacity to provide. As a consequence, doctors are placed in a difficult and unfamiliar position of needing to structure their business affairs in order to best protect their assets. In this interview Andrew Ireland of the Argyle Partnership Lawyers, Wealth Protection Team, canvasses the various issues and highlights the main principles of bankruptcy law. Mr Ireland is firmly of the view that the individual doctor should be made aware of the full scope of all issues that can impact on a wealth protection strategy. These may include a patient engagement review, a practice structuring review, an understanding of the bankruptcy laws and relevant tax issues, succession and estate matters amongst others. Although focussed on the medical profession, this article is relevant to other professionals as well.