Your three safe havens to protect assets from insolvency:

1. Low-risk spouse (eg. spouse is a teacher)

2.‘Clean skin’ Family Trusts (eg. no employees)

With the downturn in the economy the Trustee-in-Bankruptcy has its eye on Super. The latest case, Morris v Morris, shows how desperate the Trustee-in-Bankruptcy has become - such underhand tactics puts greater risk on the financial planner.

Sure, after bankruptcy, the Trustee-in-Bankruptcy can’t touch your Super received as a lump sum. However, the Trustee-in-Bankruptcy takes your Super where:

you transferred assets into Super to defeat creditors; and
you, as a bankrupt, get pension payments from Super

Ask your financial planner:

Why is lump sum Super protected - but pensions are lost if the beneficiary in the Will is bankrupt?
Why are reversionary Pensions dangerous for Will beneficiaries with few assets?
Five ways parents can protect their Super at death.