In today's National Post, on page FP9, there was a comment piece on asset
protection written by Vern Krishna. Asset protection is simply organizing assets and transactions in such a way that assets are shielded on protected from future liabilities - be it from tax, creditor, shareholder or spouse. Mr. Krishna is Counsel at a large Bay Street law firm and also executive director of the CGA Tax Research Centre at the University of Ottawa. Krishna makes some very important points for consideration when determining what asset protection strategies should be explored to ones' unique
circumstances. He makes reference to a number of options for asset protection including incorporation, limited liability partnerships, limited partnerships, trusts and offshore structures. What really surprised me about this article is what Krishna did NOT mention!
Some of the most simple and cost effective asset protection strategies are provided onshore by Canadian insurance companies. Segregated funds and insurance contracts are creditor protected and simple strategies to implement into your overall financial planning strategy. Additionally,
Individual Pension Plans are a great alternative to RRSPs for business owners and incorporated professionals - and they too are creditor protected. Asset protections is only one element of the financial planning process. Whether you have $100,000 or $100 million, you need to have a
solid financial plan to guide you from where you are presently and where you want to be in the future. Perhaps most importantly, a dynamic financial plan will make sure you can navigate bumps along the way - like a potential creditor taking a run at your hard-earned money!
CK
When discussing Life Insurance Products, ScotiaMcLeod Investment Executives are acting as Life Underwriters representing ScotiaMcLeod Financial Services (Ontario) Inc.
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