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Agreement for Sale and Purchase

This category contains 13 posts

Whose house is it?

The transfer of a family home to a trust is a relatively routine occurrence.  The general order of events is: settle trust execute agreement for sale and purchase carry out any  gifting get bank consent register transfer What happens if the last step does not occur? Has the sale in fact been effected?  Particularly in … Continue reading

Taxation of Trusts ed 3

  The taxation of trusts is a dynamic and ever-changing landscape. The third edition of Taxation of Trusts published this week (September 2016) has been up-dated to incorporate recent case law developments and legislative amendments.  The text also considers the application of FATCA to trusts and proposed new reforms to the disclosure rules and closely … 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

What’s in a name?

The Court of Appeal decision in Cowan v Martin highlights the need to clearly identify when parties are acting as trustees or the trustees’ agents.  While in this case the agency argument may seem a little contrived, and is available only because of the commonality of capacity and parties, the case remains instructive. The lessons … Continue reading

Removal of trustee to avoid demand

Buying the family farm can seem a rite of passage.  However, given the value of most farms inter-generational assistance can be required so that this can happen.  Commonly, this assistance can take the form of an on-demand loan.  While not stated, the practical reality is that if the children stay in Mum and Dad’s favour, no demand … Continue reading

Round 7 and counting

Some cases will never settle.  Stokes v Insight Legal is one of them.  In this most recent trip to the High Court the defendants (Insight Legal et al) have sought leave to appeal the High Court decision Stokes v Insight Legal [2014] NZHC 2475.  This decision was largely procedural and related to matters that had … Continue reading

What’s a trustee to do?

Family trusts are tricky things. The more so when there are loose ideas about maintaining and benefitting beneficiaries; but no real means to do so.  Commonly such trusts own a single asset and require regular financial or other assistance from the settlor or involved trustees. Such was the position of the trust settled by one Mrs … Continue reading

Trustees sent to the naughty corner

Much is written about breach of trust, and the liability that can flow.  However, a sensible question, might be, is a breach of trust always fatal?  Can trustees have a go at getting it right? As it happens, yes, in some circumstances. as is demonstrated in Masters v Stewart  they can.  In that case, a capital distribution … Continue reading

And on it goes

The latest instalment of the long-running saga involving one Mrs Colebrook, the trustees of the Stokes Family Trust and the trustees of the  RM Colebrook Family Trust has held that the trustees of the Stokes Family cannot sustain caveats lodged against the titles of the properties owned by the trustees of the RM Colebrook Family Trust. Background … Continue reading

An inconvenient truth

It is commonly said that there is no symmetry between trust law and tax law.  There is a similar disconnect in respect of the appointment and removal of trustees, powers of attorney contained in a deed of trust, regular and enduring powers of attorney.  This topic has been recently explored in the context of dementia and aging … Continue reading