Another day, another decision. Beneficiaries of new appear to be more litigious beasts than beneficiaries of old. I blame the internet. Or google. Whatever the reason, trustees need to take more care to ensure that their decisions cannot be impugned. This point is highlighted in McNulty v McNulty & Ors a case involving two beneficiaries and … Continue reading
It is common for a trustee’s liability to be limited in the deed of trust. Such clauses provide that “No trustee shall be liable for any loss not attributable to his or her own dishonesty …” or similar. While this limitation of liability does not by itself protect the trustee from the world at large, … Continue reading
The New Zealand Institute of Chartered Accountants (NZICA) is warning professionals that the Inland Revenue Department (IRD) is actively pursuing trustees personally for tax debts owed by a trust, including those trustees with no personal connection or interest in the income or assets of the trust. NZICA says it is aware of a number of … Continue reading
With the abolition of gift duty, it is now possible to gift substantial sums without the imposition of gift duty. However, before making any substantial gift, whether to a trust or some other person (or company), it is important to appreciate that some gifts can come back to bite. Prior to the abolition of gift … Continue reading
From 1 October of this year, assets can be gifted to trust free of gift duty. Gift duty, was abolished because the Government was of the view that it was an inefficient tax that was easily avoided through gifting programs. For readers unfamiliar with gifting programs – this is how they worked: If I gifted … Continue reading
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