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The devil is in the detail. Sometimes, so is the GST. Prior to compulsory zero rating of land transactions it was common to use the GST-refund to fund the deposit. However, in the event the sale did not go ahead, the GST needed to be re-paid. So if the deposit was forfeited then, well, that … Continue reading
About half of all New Zealand registered charities are trusts. Some settled on carefully considered terms, some not so much. The problem when a Charitable Trust needs amendment as it cannot fulfil its original purposes (no matter how arcane) is that unlike discretionary family trusts, charitable trusts cannot necessarily be varied by the trustees at … Continue reading
Relationships and trusts are poor bedfellows. I have said this before. Another way of expressing the sentiment is that trustees and spouses/partners are equally poor bedfellows. The difficulty being that the dividing line between Mrs Smith – wife and Mrs Smith trustee can blur. The consequence of this blurring, and the hard cold cost, was sheeted … Continue reading
Rules called the associated person rules apply to tax certain capital gains derived from land due to associations between builders, property developers and dealers. These rules were strengthened with general effect from the start of the 2010/11 income year. An unintended consequence of the amendments to the associated person rules was that the rules could also apply to … Continue reading
Being a trustee is a risky, and at times, costly business. This has been confirmed in the Court of Appeal decision in Spencer v Spencer, which largely upholds the High Court decision. The facts of this case are discussed in Trustees, be afraid, very very afraid. While the Court of Appeal decision does clarify some … Continue reading
Will-making in the context of blended families can entail complicated balancing acts as will-makers attempt to address the needs and expectations of children born to an earlier spouse or partner as well as the needs and expectations of a subsequent spouse or partner. Add a trust into the mix and asset and estate planning that might have been presumed … Continue reading
Previous blogs have talked about the dangers of failing to differentiate between trust and the trust’s settlor (or some other “related” party). This is also the case when it comes to recognising who is entitled to deductions for trust expenditure. A TRA (Taxation Review Authority) decision, since upheld on appeal to the High Court (see Brown … Continue reading
It has been a long time in the making. Today (11 September) the Law Commission’s Report, Review of the Law of Trusts: A Trusts Act for New Zealand, was tabled in Parliament. The Report recommends the introduction of a new Trusts Act to replace the current Trustee Act 1956. The proposed new Trusts Act will be … Continue reading
New auditing and review requirements have been announced that will apply to charities with annual exenditure of $500,000 or more. Currently all registered charities are required to attach financial statements to their annual returns. New requirements announced this week will provide that charities with annual expenditure of $500,000 or more will need to have their financial statements reviewed … Continue reading
The decision in Roberts v Francis further highlights the need to respond to beneficiaries’ information requests in a timely fashion. The background facts can be summarised as follows: Dr Roberts died intestate His wife obtained letters of administration The beneficiairies of his estate, as determined by the Administration Act were his wife and his children … Continue reading
Matters of Trust 