What, if, any are the logical fallacies inherent in current australian Essay

What, if, any are the logical fallacies inherent in current australian law which permits company directors and officers to evade liability using asset protectio - Essay Example may arise out of past transactions or events, the settling of which may involve in transferring and usage of one’s assets, providing services or other economic benefits. A liability is not necessarily legally enforceable, but most probably will be based on equable or constructive obligations in terms of future projects or transactions. Asset protection, on the other hand, denotes immunity from asset liability. This may be called as protecting one’s property from legal or monetary claims, problems and taxes during life and even after death of the asset â€Å"owner†. It is a form of financial â€Å"self-defense† which places one’s assets beyond reach of the creditors. Traditionally, there have been two major strategies employed to protect personal assets, namely, gifting and the use of trusts Asset protection, though legally justified in terms of its owners, is not morally rationalized when viewed on behalf of the creditors. Asset protection, thus, is a method, by which an individual or an entity, protect their assets, through procedures such as having layers of multiple entities by which the actual perpetuator always remains anonymous, and therefore, unaccountable, for their assets, or by having trusts and insurances. This article aims at identifying and zeroing in upon the logical fallacies and loopholes in the current system of asset liability and asset protection in Australia, if any, and the reforms necessary to correct the same. It has now become almost an undeniable reality that one will be sued for something or the other during his/her lifetime. And in most cases, this type of lawsuit involves asset liabilities. Asset protection has thus become a necessity. Asset protection is no longer a luxury to be afforded to the very rich.   It has become a necessity for upper middle class and even middle class.  Ã‚  Simply put, asset protection devices are strategies and legal structures designed to put one’s assets out of reach of creditors and business