In most closely held groups there will be amounts owing between entities within the group or to and from family members. It is important to ensure that any loans to ‘at risk’ entities are appropriately protected and that assets (including loans) do not build up in the entities and individuals that are at risk. This paper outlines a number of strategies to protect loans from claims from an asset protection and estate planning perspective and considers the potential application of the Bankruptcy Act and the requirements of the PPSA legislation.
This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.