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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3772
Experience:  Solicitors 2 years plus PQE
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I have assets within a limited business. I am considering moving

Customer Question

I have assets within a limited business. I am considering moving these assets which are properties which my children currently live in to a trust.
what i am trying to ensure is that if my business is issued with any claim that these assets are not included within the valuation of my estate.
Thus in the event that if any claim is forthcoming and is found valid the properties are safe being within the trust? i may add i have no claim issued at this time its just happened to a colleague and i wanted to ensure i had considered my options?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi
Thank you for your question and welcome my name is ***** ***** I will assist you.
If you are disposing of company assets to avoid a creditor then the only way a creditor could challenge that transaction would be to put the company into administration or liquidation.
Will you transfer the assets into trust at no value?
Kind regards
AJ
Customer: replied 2 years ago.

if i transfer in to a trust are the assets then secure and safe from any future claims against the primary ltd company?

my objective is to secure the assets from claim?

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
If you are transferring them for nil value or under market value - then they wont be secure if the company goes into insolvent liquidation or administration within 2 years of the date of the transfer. This would be known as a transaction at an undervalue - S.238 Insolvency Act 1986.
Can you stave off the creditors for two years?
Kind regards
AJ