Asset Protection

Ensuring your beneficiaries get the maxiumum available inheritance without being penalised by tax or third-party claims

We spend much of our lives paying tax, building wealth for our benefit and our descendants and then before you know it, from nowhere comes a third party wishing to take it from you but in fact it isn’t from nowhere, you saw this coming, or at least you had an inclination it could come.

What is Asset Protection?

Protecting your assets usually involves gifting assets into a trust ⟨waqf⟩ or otherwise, so that a third party cannot make a claim for your assets. Third parties include, amongst others:

  • HMRC;
  • A local authority for a care home assessment;
  • A legal spouse;
  • Son/daughter-in-law;
  • Beneficiary/Beneficiaries; and
  • Creditor.

Contact Legal Muslim today

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  • From Muslims
  • Understanding the bigger picture
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How does this happen?

Some laws in the UK permit the above to be taken into account when adequate planning has not been carried out, for example the Marital Causes Act, the Care Act and various other taxation laws.

So how is wealth protected?

The general thesis is that, whatever asset belongs to a person can be subject to a claim under the right circumstances. What does not belong to a person and more specifically belongs to a trust, is unlikely to be taken into account.

The Prophetﷺ asked of a bedouin man who leaving a camel without tying it Why don’t you tie down your camel? The Bedouin answered, I put my trust in Allah. The Prophetﷺ then replied, Tie your camel first, and then put your trust in Allah.

Narrated by al-Tirmidhi, Sahih al-Tirmidhi