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Beneficiary rights

This category contains 58 posts

Disclosure denied

In Jacomb v Jacomb Cooke J provides a considered assessment of disclosure in the context of a troubled and disenfranchised beneficiary. The case highlights the need for careful analysis of facts when seeking disclosure, the relevant principles, and importantly given that the Trusts Act 2019 will come into full force and effect on 30 January … Continue reading

Let the children be heard

Trusts and relationships can make for very poor bedfellows. The temptation to remove a former spouse or partner as trustee or beneficiary or to appoint or remove a professional presumed to favour one side over the other (whether or not this is the case) can be tempting. Similarly fraught can be involving children in the … Continue reading

Bye bye beneficiary?

Given the new presumption in the Trusts Act 2019 that, with effect from 30 January 2021, trustees will give basic trust information to every beneficiary, it can be presumed that many trustees will be looking to cull trust beneficiaries to ensure trusts comply with the settlor or settlors’ intentions, whether or not these are expressed … Continue reading

A fishing we shall go?

Kirby v Kirby is an application for tailored discovery in the context of a Family Protection Act claim in circumstances where the deceased left the residue of his estate after payment of expenses to a trust, the Jubilee Trust (the Trust).  The application, which was made by one of the deceased’s two children is defended by … Continue reading

Cost of failure

The proceedings in Bone v Tuck relate to an application for the removal of Mr Tuck as a trustee of the Tuck Family Trust (the Trust).  The background can be explained as follows: [3] Ms Bone alleged that Mr Tuck had not acted appropriately as a trustee and ought to be removed. [4] Mr Tuck … Continue reading

Beneficiaries tracing misappropriated funds

  Thomas Young sued (as a trustee and as a beneficiary) the widow of the former trustee John Hunt allegeing the theft of $146,175 from the Twiss Family Grandchildren’s Trust. The background is set out as follows at [3] to [6]: “[3] The Trust was settled on 1 April 1991. The settlor was Mr David … Continue reading

Who pays the piper?

Under New Zealand’s tax rules, rental income from land belongs to the owner of the land and it is the owner who must declare the income to Inland  Revenue.   Where the property is owned by a trustee or trustees, this obligation falls on the trustees because, as a general proposition, where a property is held … Continue reading

Balance of convenience is best interest of beneficiaries

  The proceedings in McLaughlin v McLaughlin relate to a dispute between the beneficiaries and trustees of the Ashley Trust (the Trust) and whether there should be an interim injunction to prevent the trustees from proceeding with the next stage of a development of trust property. By way of background see A little light on Beddoe … Continue reading

The great NZ trust crackdown

The way many New Zealanders manage their assets is set to change dramatically. Reforms to the laws governing trusts in New Zealand, due to come into force on 30 January 2021, are expected to trigger a massive reduction in the number of trusts. The Ministry of Justice estimates there are currently between 300,000 and 500,000 … Continue reading

Rights to information prevail

Disclosure is  a live matter in the context of discretionary trusts during the transition from the current position (at the discretion of the trustee with no presumption for or against) to what the position will be when the Trusts Act 2019 applies from 30 January 2021. Addleman v Lambie Trustee Limited  (see Disclosure request declined … Continue reading

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