A lack of trust.
When starting a new venture, failure often is not front of mind.
When things start to go wrong, it's only natural to then think
about asset protection strategies. We've seen a range of
strategies adopted, with limited success, and detail some common
strategies below.
Ex post facto trust
A common misconception is that assets held 'on trust' are
protected in an insolvency administration. However, this is only
the case when assets are properly vested in the trust and/or the
trust was not created in response to financial difficulty. We see
many cases where a trust is created after the assets were
originally obtained, and assets are transferred to the trust or it
is purported that assets were always held in trust.
