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This week’s High Court costs decision in Black v Giltech Precision Castings makes sobering reading for trustees. The judgment follows a substantive decison finding against Mr Black and the trustees of of a trust settled by Mr Black. The independent trustee resigned just prior to the matter being heard. However, when costs were considered, this did little … Continue reading
In December 2010 the High Court granted interim asset preservation orders in respect of assets owned by the trustees of the KA3 and KA4 Trusts and former Hanover director Mark Hotchin. The trustees of the KA3 and KA4 trusts challenged the High Court’s refusal to strike out certain aspects of the Financial Market’s Authority (FMA) claim, … Continue reading
The Court of Appeal has overturned the High Court decision of Commissioner of Inland Revenue v Newmarket Trustees Limited. Ed note: Newmarket Trustees Limited was placed into liquidation on 12 October 2012. Newmarket Trustees is a corporate trustee that acts for a number of trusts. Newmarket Trustees is insolvent due to unmet tax liabilities in … Continue reading
The recent High Court decision in Stokes Family Trust v RM Colebrook Family Trust should ring alarm bells for anyone who routinely makes purchases on an “or nominee” basis and then nominates the same trustee purchaser as to do so could invoke the doctrine of undisclosed principal. Background The facts of the case can be … Continue reading
Protectors, although perhaps not a common feature in discretionary trusts, pepper the trust landscape. What is a protector? There is no agreed definition of protector. As a general principle a protector is a person who, although not usually a trustee, has been granted certain powers relating to the trust. These powers range from powers to veto trustee decisions, to powers to … Continue reading
In April of this year the Ministry of Economic Development released a discussion paper titled “Auditing and Assurance for Larger Registered Charities”. The purpose of the paper is to seek submissions regarding the need for audit and assurance of the larger registered charities’ financial statements. For anyone interested in the subject the closing date for … Continue reading
The Charities Commission, which decides, amongst other things, whether or not to accept any application for registration as a charity (or to remove a charity from the register of charities) has been disbanded and its functions transferred to the Department of Internal Affairs. Roger Miller, Caren Rangi and Kirikaiahi Albert have been appointed as inaugaral members of … Continue reading
Inland Revenue has released Interpretation Statement 12/02: Income tax – Whether income deemed to arise under tax law, but not trust law, can give rise to beneficiary income. Interpretation Statement 12/02 (IS12/02) confirms the Commissioner’s view (outlined last year in IS1110: see Tax law review of whether deemed income is beneficiary income) that in some circumstances, … Continue reading
The appointment as trustee involves significant responsibility and, in some circumstances, it is inthe best interests of the beneficiaries for a trustee or trustees to be removed. Most commonly a trustee will retire or can be removed pursuant to a power of removal where animosity or other concerns may cloud judgment. However, in some circumstances, … Continue reading
It is well recognised that arrangements surrounding family trusts are often informal. However, while this is understandable, and explainable, the consequences of this informality can be uncertainty and, at worst, understandings of some parties that are light years from what might have been intended. Regardless of the relationship between the parties, and indeed often because … Continue reading
Matters of Trust 