“Retaining” the trust when a relationship ends is often not as straight-forward as the relevant parties might consider. This is highlighted in Collinson v Collinson & Co Limited where orders were sought for variation to a trust to allow the inclusion of one the settlor’s child and a any future children with his new party. This was required as the terms of the trust provided for future partners but defined children and remoter issue by reference to the settlor who “retained” the trust and his former spouse. Orders to vary the Trust were made pursuant to sections 122 and 124 of the Trust’s Act to effect the remaining settlor’s wishes.
Another consideration for the court was the fact that it appeared that the trust deed had never been signed. This was addressed by Venning J at [10] as follows:
“Given that the Trust has operated on the basis that the Trust Deed was validly executed I accept it is appropriate to make an order declaring that the settlement of the Trust Deed in 1995 was valid.”
References
- Collinson v Collinson & Co Limited [2024] NZHC 3208
- Trusts Act 2019, s 122, 124 and 133
Matters of Trust 
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