2023-06-06 21:00:09
What we will see in this article:
Nobody wants to lose money, right? Therefore, investing with the aim of creating new sources of income and expanding one’s own capital is part of the planning of many investors, and may be the solution to their problems.
An aspect that should also be considered at this time is asset protection. The method seeks to bring greater security and tranquility to your financial life. Still, it is common to find people who experience difficulties in devising and executing strategies with this objective.
Now, we are going to show you four essential points for you to have heritage protection in your life. Let’s go together?
1. What is asset protection?
Asset protection consists of implementing strategies that aim to bring protection to your capital. Thus, the intention is to make it last for long periods — even thinking regarding a possible succession.
It’s quite common to face lifelong crisis situations, which flee initial financial planning, right? In this way, the practice of heritage protection aims to ensure greater peace of mind for families at times like this.
For those who are entrepreneurs and partners in other businesses, the issue becomes even more important. In this context, it is possible to face legal or tax complications that put personal capital at risk.
Thus, asset protection will play an important role in separating the individual from the legal entity and, consequently, bringing security in relation to the assets. In cases like this, it is also common to hear the term asset shielding.
However, there are some differences between the two. The shield configures itself in a reactive action. That is, the entrepreneur starts to look for solutions while facing or planning to face problems.
Heritage protection, in turn, is a preventive strategy. This means that planning starts before any kind of situation. Thus, the method brings much greater security to those involved and their respective families.
2. When is heritage protection necessary?
As you have seen, heritage protection is a practice that plays an important role in providing greater security in relation to built heritage. Consequently, ignoring this issue can jeopardize a family’s assets.
Know some of the main situations in which this can occur!
Corporate
Problems in business companies are one of the main risks to equity. Thus, disputes between former partners can advance and jeopardize the capital of the organization and also the personal assets of those involved.
Labor
Another situation that poses a risk to equity — especially for entrepreneurs — is linked to labor risks. A problem with an employee or service provider can trigger a long process in the labor court.
In addition to bringing challenges to the organization’s image in the market, this context can impact business and personal finances. To avoid problems, it is important to invest in heritage protection.
Fiscal and tributary
Fiscal and tax risks occur following non-compliance with legal obligations in these areas. Therefore, this situation can lead to legal problems for the individual and the legal entity — consequently, threatening their assets.
Relatives
It is also important to highlight family risks. They can occur from divorce, disagreements regarding inheritances and also with the elaboration of faulty succession planning, for example.
Environmental
Finally, a risk that is often ignored is the environmental one. Failure to comply with some type of legislation or having environmental problems can threaten the built heritage.
3. How to have heritage protection?
Now you know that there are a number of situations that can put your assets at risk. However, know that there are strategies that collaborate to ensure the protection of your capital.
Know more!
Holding familiar
One of the most used methods for asset protection is the creation of a family holding company. It consists of a company that works exactly with the objective of keeping a family’s assets protected.
Furthermore, as it is a legal entity, there may be tax and fiscal incentives. Thus, this type of investment can result in long-term savings.
estate planning
Another strategy much sought following by investors who wish to carry out asset protection is succession planning. This practice consists of legally structuring the transfer of assets from a person to their heirs.
This planning is essential to minimize the chances of disagreements regarding the sharing of assets – which might put you at risk. In addition, just like the equity holding company, it can also bring a reduction in tax costs.
exclusive funds
Another possibility of asset protection, especially for families with high capital, is to create an exclusive fund. It is characterized by the creation of its own CNPJ. Therefore, it will serve to unlink the capital of the individual and legal entity.
It has the same characteristics as a conventional investment fund. However, it is designed exclusively to meet the profile and objectives of its single shareholder or a small group — in the case of restricted funds —, providing protection for the family’s assets.
4. Can I invest aiming at asset protection?
As you have seen, one of the aspects of asset protection includes protection once morest possible crises. Therefore, it is essential to think regarding investments that are in line with this plan.
In this context, the diversification of the investment portfolio is essential. This includes adding different assets and different classes to your portfolio. This way, you can balance the risks and possibly achieve better returns.
In addition, it is important to think regarding the greater security of at least a portion of your capital. To do this, consider the products fixed income has to offer. The predictability of returns is a positive point for equity protection.
When composing the portfolio, you should also be especially careful with the inflation. After all, it can erode your assets due to the loss of purchasing power. Therefore, seeking investments linked to inflation can be a relevant strategy.
Finally, having the support of an advisory will be important to make this process simpler. Professionals will be able to help you with useful information for you to decide how to assemble a portfolio aimed at asset protection.
As we have seen, asset protection is a practice to bring more security to investors. Ignoring this planning can be the catalyst for a series of difficulties, which will put at risk all the assets of years of work. So this strategy is worth considering!
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