Are segregated funds protected from creditors?

In many jurisdictions, segregated funds offer creditor protection under certain conditions, making them an attractive option for business owners and professionals seeking to protect their assets.

The legal structure of segregated funds as insurance products underpins this creditor protection. Governed by insurance legislation, these funds allow policyholders to designate beneficiaries directly, ensuring assets bypass the policyholder's estate upon death and go straight to the beneficiaries, thereby generally shielding these assets from creditors.

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