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Dr. Hosser - Rechtsanwaltskanzlei in Frankfurt und Karlsruhe

Asset Protection under German Law

Asset Protection is meant to shelter certain assets from loss through third parties’ access.

 

In general, specific parts of the family fortune shall be reserved in a financial worst case scenario. The intention is, that in such a situation the family member’s support can be paid from those reserved funds.

 

The fields of application for asset protection techniques are diverse and so are the instruments. Nevertheless, only certain asset protection methods are legitimate under German law.

 

German law generally limits the asset protection methods which are permissible. Ignoring those limits can lead to a legal result whereby the transfer of assets is fully ignored. Alternatively, the assigned assets may be subject to the access of third parties, just as if they would never have been transferred to the transferee.

 

In the course of our counselling, we will explain the legal framework for asset protection techniques under German law to you.

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