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The Government has announced that it will introduce legislation to Parliament to provide that assisting low-income families into home ownership will be exempt from income tax. The law change is necessary after the Charities Commission (the functions of which have been taken over by the Department of Internal Affairs – Charities) decided that assisting people into home … Continue reading
Trustees act personally. However, trustees can contract out of personal liability. For example if trustees enter into an agreement for sale and purchase of land the trustees can obtain the benefit of a standard limitation of liability (if there is one) or reach agreement on the inclusion of a suitable limitation. That said, limitations of liability, like … Continue reading
The decision in the Southland and Scottish Hall Community Trust case raises the important consideration of knowing what it is you are dealing with. In this case a declaration was sought as to whether the trust was a trust under the Trustee Act 1956, or a charitable trust under the Charitable Trusts Act 1957. The trust … Continue reading
In the civil jurisdiction, costs generally follow the event. That is, the loser pays the winner’s costs. However, there are exceptions to this. In the context of probate applications, the general rules of costs will not necessarily apply where: the litigation arises due to the will-maker’s fault due to the state of the will-maker’s final … Continue reading
A recent application for variation or rectification of the deeds of two mirror trusts highlights the need for careful consideration when drafting deeds of trust. The deeds in question define the Final Beneficiaries to include the husband/wife (as relevant) of each settlor. Some years later the husband and wife separated and their marriage was subsequently dissolved. The … Continue reading
Will trusts or testamentary trusts are the most common form of trusts. In this regard, your will is literally your last word. However, an extraordinary number of New Zealanders do not have a will. If you die intestate (legal speak for no will) your estate is distributed in accordance with the relevant formula in the … Continue reading
The lesser known “common intention constructive trust” is a difficult construct to appreicate. However, this form of trust although formally “institutional” rather than “remedial” can provide a solution where no other legal construct can. Part one of the lesson – the constructive trust Constructive trusts often had their genesis in relationship breakdowns where a legislative … Continue reading
The most recent version of the standard agreement for the sale and purchase of land includes a standard trustee limitation of liability clause (clause 16). However, this clause is only available to trustees who cannot benefit from the trust. So where trustees wish to limit their liability to the assets of a trust, and those … Continue reading
Trading up, more room for the kids, closer to the office, away from the traffic noise, life style opportunity … moving on, moving up, trading down – common reasons to buy and sell. When does a regular replacement of the family home equate to a business enterprise? And if that enterprise is carried out by … Continue reading
This blog could equally be entitled “Distribute in haste, repent at leisure”. It concerns a case about a relationship breakdown and some ill-conceived tinkering with trust property in an attempt to better protect some trust assets. The means by which this tinkering was carried out included a purported distribution of trust assets to a new trust, together with … Continue reading
Matters of Trust 