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vickiammundsen

vickiammundsen has written 429 posts for Matters of Trust

Regular pattern not just a knitting matter

The rules that tax certain sales of land include exclusions relating to a person’s main home.   These exclusions are not meant to apply where the taxpayer has a “regular pattern” of buying and selling land used as a main home, residence or business premises. A tax policy consultation document, Habitual buying and selling of land, released … Continue reading

More Remorse

Triezenberg v Mason (NO 3, recalled and reissued on 6 September 2019) chronicles the cost of a battle for the control of two family trusts.  In earlier decisions (see Loss of Morale and Buyer’s Remorse) Mr Mason was removed as a trustee of two trusts settled by him and his wife, and then later was stripped of his Appointor … Continue reading

Proposed amendments to taxation provisions relating to trusts

The Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill (Bill) includes proposed amendments arising from the administrative review of the taxation of trusts. The proposed amendment relate to clarification as to what can comprise corpus and a range of amendments that clarify the nature of certain distributions and amendments that relate variously to complying,  non-complying and foreign trusts … Continue reading

Disclosure of legal advice

McCallum v McCallum relates to applications for discovery of information including trustee legal fees, trustee resolutions and legal advice received by trustees. The case considers important procedural aspects of when discovery can be sought, the rules that apply to originating applications and the extent of discretion available to the High Court regarding such matters.  Of … Continue reading

£200 then, $120,000 now?

In 1961 Andrew Taylor advanced £200 to his mother to assist with the purchase of a property.  Andrew’s contribution, which equated to 7% of the value of the property was recorded by need that recorded: … My son, Andrew Taylor, has provided two hundred pounds [200 pounds] towards the purchase price of the property, and … Continue reading

What a difference a day makes

  How free are we to dispose of assets during our life?  Commons v Commons, which has to date has focused on discovery issues, has at it’s heart the vexed question as to whether inter vivos gifts to family trusts should be equated with testamentary dispositions.   Flowing from this Commons raises important issues regarding the proportionality of beneficiaries’ rights to … Continue reading

Can attorneys exercise powers of appointment?

In Godfrey v McCormick Nation J held that an attorney under an enduring power of attorney can not exercise powers of appointment even if held in a personal capacity.  This is inconvenient where there is incapacity.  While this will likely be addressed by the trustee appointment and removal provisions in the Trusts Act 2019 (following … Continue reading

Trusts Bill obtains Royal Assent

Further to last week’s post regarding the Trusts Bill having its third reading before the New Zealand Parliament (see A whole new world … in 18 months), the Bill received Royal Assent on 30 July 2019 and is therefore now the Trusts Act 2019. Aside from certain provisions relating to trusts affecting financial services legislation, the … Continue reading

The incredible lightness of tax of being a charity

Blind Foundation bulldozes $8m Parnell house, creates carpark is an emotive headline from the New Zealand Herald published on 27 July 2019  that highlights the disconnect between registration as a charity and the tax benefits that flow from this, and highlights the reality that registration as a charity does not obligate a charity to distribute its … Continue reading

A whole new world … in 18 months

The Trusts Act 2019, which has been 17 odd years in the making is now law.  The Trusts Bill passed its third reading and received Royal Assent on 30 July 2019, meaning most provisions of the Act come into force on 30 January 2021. The Trusts Act replaces the Trustee Act 1956 and the Perpetuities … Continue reading

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