It is not often appreciated that trustees act personally. This means that if a trustee defaults on a financial obligation, if the trustee is a natural person, that person can be bankrupted. This point was considered by the High Court in the recent decision in the Bankruptcy of Thomas Joseph Brown where the Court confirmed that a … Continue reading
The fifth issues paper on the Review of the Law Trusts: “Court Jurisdiction, Trading Trusts and other issues: Review of the Law of Trusts” was issued today. The paper is available from the Law Commission. The paper will be progressively reviewed and commented on at the Review page of this blog.
A recent High Court decision found that the Family Court does not have the jurisdiction to consider an application under s 182 of the Family Proceedings Act if the order dissolving the parties’ marriage was not made in New Zealand. See Jurisdiction, Divorce and Trusts. s. 182 Section 182 of Family Proceedings Act 1980 enables the Court … Continue reading
When a trustee derives income for tax law purposes due to the application of deeming provisions it is not always clear whether that deemed income can be distributed as beneficiary income. An interpretation statement released today for discussion purposes considers the tax treatment where income is derived for income tax purposes but not trust law purposes. … Continue reading