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Court appoints receiver to trust

In Bank of New Zealand v Rowley and Skinner [2012] NZHC 2835 the High Court determined that it could have the jurisdiction to liquidate a trust.  See Liquidation of trusts – more clever ways to winkle assets from trusts for the background facts. The matter has now been reconsidered, following service of the judgment referred to … Continue reading

Settlors can have little sway when beneficiaries are of age

It is a fundamental proposition of trust law that a valid trust requires that the settlor has a clear intention to create a trust.  However, regardless of how clear those intentions or the terms of the trust are, a trust can later be varied even if in defiance of the settlor’s stated intentions. Where a … Continue reading

Better the devil you know …

Delegation is only permissbile between trustees in limited circumstances.  These circmstances can be proscribed by the deed of trust or the Trustee Act.  When dealing with trustees, unless all trustees are party to any decision or contract it is extremely important for any contracting party to establish whether the trustee being dealt with has the … Continue reading

Retired trustee liable for costs of proceedings

Retirement and appointment of trustees is a routine occurance over the life of the trust.  On the appointment or retirement the trustee the trust property must be conveyed to the continuing and / or new trustees.  However, in a staggeringly high number of instances this need to convey the trust property is overlooked and does … Continue reading

Trustee liability up-date regarding voidable transactions

The Matters of Trust report on Rea and Sargison v Russell has been updated to note the liquidators’ succesful appeal.  See Rea and Sargison v Russell – trustee liability in the context of voidable transactions.

What a will can say about a trust

Two recent cases have highlighted the importance of ensuring that any person who disposes of assets onto trust should update their will to reflect the disposition, and if relevant link to the trust.  In one case the fact that assets purported to be bequested by will had previously been transferred to a trust was used in … Continue reading

Relationship property agreements and trusts

Relationship property agreements and trusts are poor bedfellows at the best of times.  While trusts are a common feature of many couples’ asset and estate planning activities, assets owned by a trust are not relationship property.  Although the Property (Relationships) Act 1976 (the Act) can have application to trusts, the provisions that allow parties to contract … Continue reading