It is no coincidence that the rich gets richer by multiplying and protecting their wealth through a number of selected vehicles. Family trusts and SIPPs (Self Invested Pension Funds) are just two or many investment vehicles that investors use to ensure that their assets are protected for generations. Whilst it may cost you around £500-£1,200 sterling to set up, a trust and SIPP can save you thousands of pounds in protecting your wealth against taxation, bankruptcy, divorce, malicious law suits and impatient creditors.
Family trusts are investment vehicles commonly owned by rich asset builders (i.e. Pritzker family trust, owners of the Hyatt hotels chain). Whereas, SIPPs are commonly set up by business owners and professionals (like Doctors, Lawyers, and Opticians). Nevertheless, whichever vehicle you choose, the main point in this article is that you want to ensure that your income/wealth is safe all the way into your retirement years. Therefore, if you decide to seek the enormous profit that the green-tech revolution offers to ensure you have wealth when you retire, you must approach it in the smartest way.
Yes, it is true that the green-tech industry is on every governments’’ agenda around the world as the global energy market move away from oil-coal-gas (fossil fuel) sources to more environmental friendly energy resources. So, be smart!
1). Have your green estates deeded in your chosen vehicle:
Undeniably, there are new commercial real estate investment opportunities cropping up in the green-tech industry and you can have fun making money whilst the industry is growing. What you do not want to happen to you, like what happen to many property investors during the 2007-10 financial crises is to be going to court or hiding from bailiffs or facing repossession or filing bankruptcy. Therefore, your first and foremost wealth protection strategy is to set up a family trust or SIPP and have your solicitor register the deed in the name of the Trust or SIPP. As a rule of savvy investing, you should never buy real estate in your name or associate (i.e. spouse or child or friend) name. You might as well register your purchase on Facebook for the world to see.
If someone wants to sue you, one of the first things their solicitor will do is to carry out a search at Land Registry to see if there is any real estate registered against your name. The success of this search will determine to a large extent whether or not they should pursue a claim against you. If you have no registered assets (or personal home) registered in your name, in most cases the solicitor will advise their client that the case is not worth pursuing. Mr. R, a chap I know took his wife and family out to Mauritius for two years and did not pay any of his mortgages. All properties were registered in trust and on his return everything was still in tact.
2). Record charges:
Every loan you take out shall be registered and charged against you trust or SIPP. In this way, all credit agreements will be between the vehicle and the provider. So, if anyone is to be pursued for default, it will be against the vehicle. One lady, I will refer to her as Jane blog, Jane net-worth was around £40 million plus before 2007. By 2009, she was worth nothing, completely wiped out by the crisis, bar for 2 houses worth 1.9m and 1.4mil that she had in an offshore family trust.
The next four benefits will be discussed in part two of this blog.. Stay logged-In
