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appointment and removal of trustees

This category contains 12 posts

Rival contenders as trustee

Trainer v Leake involves a contest between “rival contenders as trustees of a religious trust.” Background The Hawkes Bay Revival Centre is a church founded in 1986. It is run under the auspices of the Hawkes Bay Revival Centre Trust, a trust established by Trust Deed to hold real and persona; property “for the benefit … Continue reading

It’s not a beauty parade

Trusts are commonly used for secession planning  providing, at least conceptually, for long-term asset ownership that will not be disrupted by death.  That’s the theory anyway.  However, the passage of time and the appointment and removal of trustees can mean that once harmonious relationships and arrangements are no longer so. The decision in Guest v … Continue reading

Family dispute ends in a subpoena too far

Some disputes have the plots of a war movie. Everything starts fine until the hostilities begin and everything gets messy. Sometimes this just leads to someone carrying out an attack that doesn’t make sense… The defendants in the case of Triezenberg and Dodd v Mason, Alexander and Wendy Mason, were married in 1959 and had three … Continue reading

Two trustees go down to the woods … one is discharged, one is not

The use of corporate trustees is a common response to trustee liability.  However, where one of two natural person trustees retires and a corporate trustee is appointed, it is important to consider whether the retiring trustee has been discharged.  See ss 43, 45 and 46 of the Trustee Act 1956, which provide: Relevant Legislation 43 Power … Continue reading

Who pays the piper?

When a trustee retires, it is necessary to transfer the trust’s assets from the trustees (including the retiring trustee) to the continuing and any new trustee.    Where a trustee is removed in contentious circumstances the trustee may be unwilling to assist in the transfer of trust property.  Sometimes with good reason – for example where … Continue reading

A sorry tale …

As noted in the judgment McLaren v McLaren at [1]  this case relates to “… a sorry tale of what can occur when a family adopts an inappropriate form of trust deed without adequate advice or sufficient understanding of the legal effect of its terms. In this case, a son who was given a power … Continue reading

The trustee did it

One of the stated purposes behind the proposed new Trusts Act (currently in the form of a draft bill) is to make trust law clearer and more accessible.  Laudable,  but is it realistic?  The naysayers need not go much further than the decision in NZ Natural Therapy Limited (in Liquidation) v Little.  A little bit of background … 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

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

Can a non-fiduciary owe fiduciary obligations?

In the Matter of the Piedmont Trust and the Riviera Trust powers of appointment and who can exercise them are an important aspect of both the management of a trust, and the very terms on which a trust is settled.  It is now generally agreed that  whether the powers are held by a trustee or a … Continue reading