//
archives

General

This category contains 110 posts

Trust validity

In 2017 MezhProm Bank v Pugachev (see The Curious Story of the Angora Cat) heralded the possibility of a whole new sham genre of true effects as the new trust illusion. Fast forward to 2019, and where has this taken us?  Perhaps surprisingly, not very far at all. MezhProm Bank v Pugachev was soon followed by the … 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

To gift or not – what did I intend?

The decisions in Reid v Castleton-Reid and Tian v Zhang highlight the importance of recording not only transactions, but also the parties’ expectations.  Reid v Castleton-Reid relates to the correct characterisation of a $1.7m trading account.  Tian v Zhang relates to whether sums advanced represented a dowry or were held on resulting trust.  In both cases the judgment … Continue reading

Regular pattern not just a knitting matter

The rules that tax certain sales of land include exclusions relating to a person’s main home.   These exclusions are not meant to apply where the taxpayer has a “regular pattern” of buying and selling land used as a main home, residence or business premises. A tax policy consultation document, Habitual buying and selling of land, released … Continue reading

Proposed amendments to taxation provisions relating to trusts

The Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill (Bill) includes proposed amendments arising from the administrative review of the taxation of trusts. The proposed amendment relate to clarification as to what can comprise corpus and a range of amendments that clarify the nature of certain distributions and amendments that relate variously to complying,  non-complying and foreign trusts … Continue reading

What a difference a day makes

  How free are we to dispose of assets during our life?  Commons v Commons, which has to date has focused on discovery issues, has at it’s heart the vexed question as to whether inter vivos gifts to family trusts should be equated with testamentary dispositions.   Flowing from this Commons raises important issues regarding the proportionality of beneficiaries’ rights to … Continue reading

Can attorneys exercise powers of appointment?

In Godfrey v McCormick Nation J held that an attorney under an enduring power of attorney can not exercise powers of appointment even if held in a personal capacity.  This is inconvenient where there is incapacity.  While this will likely be addressed by the trustee appointment and removal provisions in the Trusts Act 2019 (following … Continue reading

Trusts Bill obtains Royal Assent

Further to last week’s post regarding the Trusts Bill having its third reading before the New Zealand Parliament (see A whole new world … in 18 months), the Bill received Royal Assent on 30 July 2019 and is therefore now the Trusts Act 2019. Aside from certain provisions relating to trusts affecting financial services legislation, the … Continue reading

A whole new world … in 18 months

The Trusts Act 2019, which has been 17 odd years in the making is now law.  The Trusts Bill passed its third reading and received Royal Assent on 30 July 2019, meaning most provisions of the Act come into force on 30 January 2021. The Trusts Act replaces the Trustee Act 1956 and the Perpetuities … Continue reading

Law Commission recommends new Relationship Property Act

The New Zealand Law Commission has released its Report “Review of the Property (Relationships) Act 1976. The Report recommends wide ranging changes to the thrust of property contributions and division in the context of relationships, modernising aspects where changes in society have clearly left behind attitudes framed in the existing legislation and promoting more flexible … Continue reading

Categories