Very grateful for any input on the below:
Is the release of collateral an addition to a trust if the asset was originally collateral for a debt to a third party (not the settlor) when settled into Trust?
The trust would be an excluded property, protected trust so an addition would taint the trust and remove its protected status.
The situation is that an employee owns shares in the employer company and the shares are collateral for an outstanding loan should it not be repaid.
Thomas Barker
Charter Tax