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Approximately 19,000 New Zealanders in long-term residential care receive a residential care subsidy (RCS), that is financial assistance with long-term care once a person is no longer able to be cared for at home. To qualify for a RCS a person must first be able to show a limited level of assets. However, if a … Continue reading
Costs decisions could be considered pretty dull reading. However, if you are a trustee of a trust, you might be wise to upskill on how you might fare on the costs front if involved in court proceedings, regardless of whether you are pursuing or defending. While in some circumstances the trustee may be able to recover … Continue reading
A trustee has come out on top against liquidators when the liquidators attempted to recover payments relating to investments made without that trustee’s knowlege. However, whether the beneficiaries will be as sanguine about matters as the court is not clear. See https://mattersoftrust.wordpress.com/trust-law-update/rea-and-sargison-v-russell-trustee-liability-in-the-context-of-voidable-transactions/
Being a trustee is not all honour and glory and can often entail liability and misery. For some of the questions to consider if you are asked to be a trustee see https://mattersoftrust.wordpress.com/trustees-101/ive-been-asked-to-be-a-trustee/.
Historically, absent a specific anti-avoidance provision, trustees have been unclear as to whether resident withholding tax (RWT) credits must be allocated in proportion to interest income or if the credits could be “streamed” for better effect. A recent amendment to the Income Tax Act 2007 has clarified the position and now provides that a trustee can … Continue reading
Gifts made when insolvent can be voided, that is the gift is reversed. This means that if a person is bankrupted any gifts made within the 2 years prior to bankruptcy are voidable as against the Official Assignee (this means that any gifts must be paid back to the bankrupt’s “estate” and can be used … Continue reading
The words “breach of trust” are frequently bandied around in the context of trusts. It is generally accepted that such breach is bad and is to be avoided. However, the full cost of a breach of trust is not always fully appreciated. While it is understood for the best part, that if a trustee does … Continue reading
It is not often appreciated that trustees act personally. This means that if a trustee defaults on a financial obligation, if the trustee is a natural person, that person can be bankrupted. This point was considered by the High Court in the recent decision in the Bankruptcy of Thomas Joseph Brown where the Court confirmed that a … Continue reading
The fifth issues paper on the Review of the Law Trusts: “Court Jurisdiction, Trading Trusts and other issues: Review of the Law of Trusts” was issued today. The paper is available from the Law Commission. The paper will be progressively reviewed and commented on at the Review page of this blog.
A recent High Court decision found that the Family Court does not have the jurisdiction to consider an application under s 182 of the Family Proceedings Act if the order dissolving the parties’ marriage was not made in New Zealand. See Jurisdiction, Divorce and Trusts. s. 182 Section 182 of Family Proceedings Act 1980 enables the Court … Continue reading
Matters of Trust 