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Power of attorney does not negate terms of trust deed

Powers of attorney and deeds of delegation can be useful, especially where a trustee may be absent from New Zealand for periods of time.  However, the extent to which trustees can rely on decisions made where one trustee has acted in a personal capacity and under a power of attorney require consideration. Consider the facts in … Continue reading

2015 Trust webinar series

Vicki Ammundsen is presenting a series of trust webinars for CCH Learning this year.  The first webinar in this popular series is Trust Fundamentals.  This webinar, which covers the fundamentals of settling and administering trusts, starts at 10.30am on 18 February 2015. Topics covered will include: Requirements of a valid trust Drafting traps and considerations How much power can/should be reserved to the … Continue reading

Another tributary in the trickle of constructive trust cases

The decision in Judd v Hawkes Bay Trustee Company Limited represents another tributary in the trickle of constructive trust cases.  The facts are relatively straight-forward – trust settled after the end of the settlor’s marriage owns the family home, third wife (Ms Judd) aware of this, Ms Judd makes some direct and indirect contributions (40% was claimed, ultimate result equates … Continue reading

Principles of interpretation

While much writing about trusts focuses on the intrinsic aspects of trusts that separate trusts from other forms of ownership, such as companies; there are areas where the same principles can apply to both. One of these areas is the principles of interpretation that apply when the terms of a trust are unclear.  This is … Continue reading

Going it alone

Following the end of a relationship “going it alone” is a practical reality.  However, where a trust was settled during the relationship, the extent to which one can “go it alone” needs to be carefully assessed.  This reality, and the consequences of failing to address it are highlighted in the High Court decision in Nichols … Continue reading

Notional trust

The Supreme Court decision in Jennings Roadfreight Ltd (in liq) v CIR is an interesting example of a “notional trust”.  The question to be determined in this case was whether money held by a company in liquidation (that owed PAYE to Inland Revenue) was held on trust for the CIR or was available to other creditors in … Continue reading

What’s in a name?

The Court of Appeal decision in Cowan v Martin highlights the need to clearly identify when parties are acting as trustees or the trustees’ agents.  While in this case the agency argument may seem a little contrived, and is available only because of the commonality of capacity and parties, the case remains instructive. The lessons … Continue reading

Removal of trustee to avoid demand

Buying the family farm can seem a rite of passage.  However, given the value of most farms inter-generational assistance can be required so that this can happen.  Commonly, this assistance can take the form of an on-demand loan.  While not stated, the practical reality is that if the children stay in Mum and Dad’s favour, no demand … Continue reading