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Beneficiary rights

This category contains 46 posts

Highly unusual – or not?

In the Matter of the Representation of Scarlett Investment Holdings Limited addresses an application for rectification by a de facto trustee in circumstances where the settlor of three trusts settled by declarations of trust dated 23 February 1982 had died and the original trustee, a BVI private company was believed to have been struck off from … Continue reading

Beneficiary rights – never the twain shall meet

In Little v Howick Trustee DL Limited a beneficiary sought a review of trustee decisions and the removal of a court appointed trustee.  Perhaps surprisingly, considering the position taken in the Law Commission’s draft Trusts Bill and the Trusts Bill currently before Parliament regarding beneficiary rights,  Brewer J found that a discretionary beneficiary had no standing to seek a … Continue reading

Strangers and Beddoe orders

A Beddoe order (the name derives from the case Re Beddoe (Downes v Cottam))  is an order made by the court that permits trustees to incur expense on behalf of the trust filing or defending proceedings. A Beddoe order (if obtained) protects the trustees against claims by the beneficiaries that the action should not have been brought … Continue reading

David and Goliath?

Pertinent facts: On first blush Biggs v Biggs has the appearance of a David and Goliath style contest.   Nation J refers at [10] to the 2300 pages of documents that have had to be considered and at [11] notes that when claims are pursued “in a particular way, there can be scant recognition of the … Continue reading

The blessing of the court

Being a trustee is hard, and at times quite possibly boring (to paraphrase from the movie An Education: Emma Thompson and Carey Mulligan).  And worse, if you get it wrong the beneficiaries can sue you, no matter how hard a trustee might try to get it right. Fortunately, help is at hand in the form of … Continue reading

Home is where the trust is?

The decision in Van Uden v CIR highlights the importance of recognising when a property owned by a trust can comprise a permanent place of abode.  The significance of a property being a permanent place of abode is that a person who is otherwise non-resident for tax purposes, will be treated as resident in New Zealand … Continue reading

Disclosure request declined – 24 years a leap too far for a beneficiary who had already received 25%

As noted by Woolford J in para [1] Addleman v Lambie Trustee Limited relates to “an unfortunate dispute between sisters as to what level of disclosure is appropriate for the affairs of the Lambie Trust (the Trust)…” Prudence and Annette are sisters.  In1972 Annette broke her spinal cord diving into a tidal pool in Sydney … Continue reading

Trustees’ dilemma – how old is old enough to know?

The moral dimension of trusteeship arises in many contexts. The recent New Zealand court decisions concerning information obligations to beneficiaries, and the way this is dealt with in the new Trusts Bill, highlight the difficulty of judging what information is too much or too little to disclose. However, general principles on disclosure bypass the consideration … Continue reading

Erceg Appeal dismissed – exceptional circumstances not to disclose

What information can a discretionary beneficiary of a trust request from the trustees? If the beneficiary has been bankrupted, does that mean they no longer have personal rights to request information? The Supreme Court has now expressed its view on these issues and has upheld the earlier Court of Appeal decision. However, the Supreme Court’s judgment … 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

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