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The informality associated with loans between family members can lead to later disputes when different interpretations of the transaction emerge. Warin v Warin is a case in point. In that case $367,903.90 was advanced to the Warins’ daughter. The loan comprised: $100,000 that was initially secured by mortgage in 1997 $141,749.70 that was loaned to … Continue reading
“The last of the Memoranda shows that Mr White Senior wished each of his three children to enjoy the benefit of his estate equally and that the property be sold to one of his three children. We will return to the words of the Memoranda in due course.” Thus starts the Court of Appeal decision … Continue reading
Draft interpretation statement PUB00261: Income tax – taxation of trusts has been released for consultation. PUB00261 summarises the tax law as it applies to trusts and when finalised it will replace the Commissioner’s original statement on the trust rules in the “Explanation of Taxation of Trusts” in the Appendix to Tax Information Bulletin Vol 1, … Continue reading
Estates can take time to administer and distribute. Beneficiaries can tire of waiting. Or they might require funds to sue the executors or other stuff. The remedies available to beneficiaries depend on part as to whether the estate has transitioned from the administration phase. See transition from executor to trustee. This was of relevance in … Continue reading
The decision in Marshall Family Trust may require some reconsideration of how powers of appointment can be exercised following the appointor’s loss of capacity. In that case the surviving appointor, who was also a trustee, lost mental capacity and quite properly needed to be removed as a trustee. An application was made for a vesting order. … Continue reading
The High Court decisions, Concepts 124 Ltd v Commissioner of Inland Revenue [2014] NZHC 2140 and Staithes Drive Development Ltd v Commissioner of Inland Revenue [2015] NZHC 2593 have resulted in uncertainty surrounding the application of the voting interest test for corporate trustees . See Corporate Trustee Associated for GST purposes In both cases, the … Continue reading
In Davis v White (see You aren’t my beneficiary – are you??) a trust was found to have failed by reason of uncertainty. The second hearing of the matter related to costs and is a sobering tale for trustees. Mrs White who incurred significant costs (AUD 40,893 and $85,369.50 in New Zealand, plus disbursements) said that the proceedings could … Continue reading
The issue of incapacitated trustees is not a new one. Trustees continue to age and many do not retire when they can still elect to do so. This leaves the issue of removing incapacitated trustees and transferring property held by them to continuing and new trustees. While it is generally accepted that an attorney under an … Continue reading
What information can a discretionary beneficiary of a trust request from the trustees? If the beneficiary has been bankrupted, does that mean they no longer have personal rights to request information? The Supreme Court has now expressed its view on these issues and has upheld the earlier Court of Appeal decision. However, the Supreme Court’s judgment … Continue reading
As noted in the judgment McLaren v McLaren at [1] this case relates to “… a sorry tale of what can occur when a family adopts an inappropriate form of trust deed without adequate advice or sufficient understanding of the legal effect of its terms. In this case, a son who was given a power … Continue reading
Matters of Trust 