Acknowledgement of Debt

This category contains 17 posts

Emerging failure

Mr White established the Rex White Family Trust (the Trust) in 1992 to hold an inheritance he  received from his mother.  The trustees of the Trust were Mr Davis and the solicitor who prepared the trust deed, Mr McNiece (together the Trustees). Mr White’s wife was not aware of the trust at the time, although she had … Continue reading

Love lost

When who stopped loving who first is lost to the antiquities of time, for modern lovers there is still the trust to keep them shackled together. And what a shackle, and what expense… Whittle v Whittle is another tale of love lost but the Trust, if not the trust, remaining.  In this case the pesky … Continue reading

Buyer’s remorse

The expression “Beware Greeks bearing gifts” as been attributed to  the story of the wooden horse of Troy, used by the Greeks to trick their way into the city. It is recorded in Virgil’s Aeneid, Book 2, 19 BC: “Do not trust the horse, Trojans. Whatever it is, I fear the Greeks even when they … Continue reading

Gift it or lose it

In 2004 Mr Wheeler sold over $2.4m of assets owed by him to a trust he settled.  The trustees were Mr Wheeler and his accountant Mr Lindsay.  The purchase price for the assets sold to trust was left as a debt owing to Mr Wheeler.  Between 2004 and 2010 five gifts of $27,000 were made … Continue reading

When the going gets tough – litigate and litigate and litigate …

Some cases seem to have eternal existence.  The original matter of Spence v Lynch is one of these.  The are now at least 9 recorded decisions by my count named either  White v Spence or Spence v Lynch.  The first case was written up in this blog as Dominant trustee architect of loss.  The name was apt then, … Continue reading

Debts owing by trustees “real”

When assets are transferred to a trust by a settlor the transfer is generally by way of gift or sale.  Where assets are sold there is a gift back that can be forgiven immediately, progressively or at some future date, if at all. Prior to the abolition of gift duty gifting programs were common and … Continue reading

Status of debts back

The relationship between trusts and relationship property agreements requires careful attention. Whether or not trustees can or should be party to a relationship property agreement is one of many important considerations.  Another consideration is how debts owing by trustees should be treated for relationship property purposes. Importantly, if there is no relationship property agreement (and assets are … Continue reading