Some creditor proofing strategies for owner-managed business follow. For details contact your professional advisor.

• By placing capital assets in a separate holding company, subsequent legal claims arising in the operating company may not affect these assets.


• Paying tax-free dividends to a holding company may protect assets from future claims.

• Shareholder loans may be secured by a general security arrangement to give the shareholder priority over all unsecured creditors.
  
  
• Consider an estate freeze such that the future growth will go to other family members.
  
  
• Transfer assets into a Discretionary Family Trust.