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Retirement and appointment of trustees is a routine occurance over the life of the trust. On the appointment or retirement the trustee the trust property must be conveyed to the continuing and / or new trustees. However, in a staggeringly high number of instances this need to convey the trust property is overlooked and does … Continue reading
The Matters of Trust report on Rea and Sargison v Russell has been updated to note the liquidators’ succesful appeal. See Rea and Sargison v Russell – trustee liability in the context of voidable transactions.
Two recent cases have highlighted the importance of ensuring that any person who disposes of assets onto trust should update their will to reflect the disposition, and if relevant link to the trust. In one case the fact that assets purported to be bequested by will had previously been transferred to a trust was used in … Continue reading
Relationship property agreements and trusts are poor bedfellows at the best of times. While trusts are a common feature of many couples’ asset and estate planning activities, assets owned by a trust are not relationship property. Although the Property (Relationships) Act 1976 (the Act) can have application to trusts, the provisions that allow parties to contract … Continue reading
Commentators have been divided as to whether it is correct for gifts made by a person’s spouse or partner to be taken into account when assessing that person’s entitlement to a residential care subsidy. The question, which revolves around the correct interpretation of s 9B of the Social Security (Long-Term Residential Care) Regulations has been answered … Continue reading
The thorny subject of the informality that can occur with family arrangements involving loans and trusts and the resultant lack of accord when relationships sour is not new. See Is it a bird, is it a plane, is it a loan? The issue has arrisen again in the context of a statutory demand issued by the purported … Continue reading
In this month’s Offshore Investment magazine Vicki Ammundsen observes how New Zealand foreign trusts are able to minimise taxation in New Zealand due to the design and purpose of the trust rules in the New Zealand income tax legislation. She explores the legitimacy of New Zealand trustees of foreign trusts and explains how the tax-free … Continue reading
Vanity Fair is an unlikely source of interest for people whose minds turn more often to trusts than trust fund babes. However, a line in Vanity Fair’s recent interview with Ned Lambton, the seventh Earl of Durham, after whose ancestor Wellington’s Lambton Quay was named (the first New Zealand connection), warrants further consideration. Discussing his … Continue reading
Although liquidation is generally thought of in the context of companies, it may be possible for a trust to be liquidated. In what appears to be the first proceedings of their kind the Bank of New Zealand (BNZ) has made an application for liquidators to be appointed to two insolvent trusts. As a starting point … Continue reading
Trustees contract personally. This means that unless the trustee’s liability is limited by agreement, a trustee is, in most circumstances, personally liable for any losses that arise. This is the case whether or not the trustee can benefit from the trust. “… if the trustees meant to limit their liability, it was for them to … Continue reading
Matters of Trust 