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vickiammundsen

vickiammundsen has written 344 posts for Matters of Trust

Trusts Bill has first reading

The Trusts Bill, which was introduced on 1 August 2017, and which represents that first major change to trust law legislation in New Zealand for over 60 years, had its first reading in Parliament on 6 December 2017.   See Trusts Bill Released 1 August 2017 and Trusts Bill Receives First Reading Also see the First Reading. The … Continue reading

Trustees lead astray by Memorandum of Wishes

Mackie Law independent Trustee Limited v Chaplow provides a useful consideration as to how closely trustees should follow a memorandum of wishes. The trust in question was settled by Mr Munro who wrote the memorandum of wishes referred to shortly before his death. The primary beneficiary of the trust following Mr Munro’s death, was his … Continue reading

Protecting the trustee’s position on the changing of the guard

The decision in Meritus Trust Company Limited v Butterfield Trust, a decision of the Supreme Court of Bermuda, considers the practical matter of whether a removed trustee can retain sufficient trust assets against which to enforce its indemnity in relation to a contingent costs liability.  In this case the contingent costs liability was estimated at $5 million and … Continue reading

Bankruptcy and abuse and of course a trust or two

Boy meets girl. Boy marries girl. Boy bankrupts girl after she fails to pay $12,263.50 of court costs. Girl’s appointment as trustee and appointor of two family trusts is terminated by her bankruptcy. Aint love grand? Anne (the girl in this narrative) remains a beneficiary of the trust that owns the family home where she … Continue reading

Home is where the trust is?

The decision in Van Uden v CIR highlights the importance of recognising when a property owned by a trust can comprise a permanent place of abode.  The significance of a property being a permanent place of abode is that a person who is otherwise non-resident for tax purposes, will be treated as resident in New Zealand … Continue reading

The curious story of the Angora cat

Para 438 in the decision of MezhProm Bank v Pugachev refers to a phenomenon in patent law known as the Angora cat problem first identified by Professor Franzosi, an eminent academic expert in the field: “Professor Mario Franzosi likens a patentee to an Angora cat. When validity is challenged, the patentee says his patent is … Continue reading

Family dispute ends in a subpoena too far

Some disputes have the plots of a war movie. Everything starts fine until the hostilities begin and everything gets messy. Sometimes this just leads to someone carrying out an attack that doesn’t make sense… The defendants in the case of Triezenberg and Dodd v Mason, Alexander and Wendy Mason, were married in 1959 and had three … Continue reading

Disclosure to the trustees

Disclosure of trust information to beneficiaries is commonly considered.  However, what of disclosure to the trustees? Consider the case of Daniel v Cundall.  In this case Mr Daniel and Mr Cundall were the trustees of a trust.  Mr Daniel, a lawyer, says that he left the day-to-day trust administration to Mr Cundall. After a long period of … Continue reading

The future of trust administration

The roles of trustees and trust administrators can be a rewarding but difficult role.  With the prospect of a Trusts Act in the foreseeable future (see Trusts Bill released 1 august 2017) trustees and trust administrators need to be match fit.  Increased reporting obligations under CRS, AML/CFT and FATCA are another matter for consideration. For … Continue reading

Disclosure request declined – 24 years a leap too far for a beneficiary who had already received 25%

As noted by Woolford J in para [1] Addleman v Lambie Trustee Limited relates to “an unfortunate dispute between sisters as to what level of disclosure is appropriate for the affairs of the Lambie Trust (the Trust)…” Prudence and Annette are sisters.  In1972 Annette broke her spinal cord diving into a tidal pool in Sydney … Continue reading