Cain v Martin relates to wide ranging proceedings regarding the proper administration of the Tolemac Trust following several years of disharmony following the settlor’s death. The most recent proceedings relate to the removal of one of the two trustees due to concerns regarding proper disclosure regarding trust assets and an unauthorised distribution to a trustee as set out at [19]:
Isac J provides a useful consideration of the law relating to the removal of trustees. Isac J’s reasons to remove Claire as a trustee are articulated as follows:D
The decision is useful as it specifically considers the application of section 31 of the Trusts Act 2019 (a trustee must not exercise a power for the trustee’s own benefit) to a trustee who is also a beneficiary. Isac J also references the relevant terms of the Trust highlighting the need for clear adherence to trust terms in circumstances where a proper decision could have been made, but was not.
References:
- Cain v Martin [2024] NZHC 715
- Trusts Act 2019, ss 31,112, 114
Matters of Trust 
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