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Gifting

This category contains 26 posts

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

Ink vs litigation

On first glance Almond v Read, appears to have it all.  Arguments were made relating to the parties common intention, a constructive trust and breaches of fiduciary duty in the context of family owned land that was acquired with best of intentions.  However, over time, different parties adopted different views of the basis upon which a … Continue reading

To gift or not to gift – that is the question

The case of The Church of Jesus Christ of the Latter-Day Saints Trust Board v CIR considers whether donations made in connection with a missionary application are charitable gifts for the purposes of s LD1 of the Income Tax Act 2007. The crux of the matter for consideration is whether gifts made by church members … Continue reading

Is debt forgiveness on account of a loan to a charity a gift that allows a tax credit?

In Roberts v CIR the question for the court is whether the forgiveness of debt a monetary gift for the purposes of s LD 3(1)(a) of the Income Tax Act 2007? Background The Oasis Charitable Trust (the Trust), a registered charitable trust, was settled by Mrs Roberts and her late husband on 14 October 2007 to facilitate the growth of … Continue reading

My house? Your house?

Much is said of late about the “bank of Mum and Dad” in the context of parents helping children into their first home.  However, with the passage of time positions can change as to whether sums advanced were loans or gifts and how much has been re-paid.  When Mum or Dad is elderly questions can … Continue reading

Resulting trust arises in contractual vacuum

The bare facts of Chang v Lee can be summarised as follows: Ms Lee purchases a property in Sunnynook Mr Chang (Ms Lee’s uncle) advances Ms Lee $275,000 of the $566,000 purchase price The advance was not a gift The terms of the loan advance were incomplete Mr Chang made the advance to Ms Lee on the … Continue reading

One swallow does not a summer make

The expression “One swallow does not a summer make, nor one fine day; similarly one day or brief time of happiness does not make a person entirely happy” is attributed to Aristotle (384 – 322 BC). This proverb is perhaps apposite in the case of D v T. D (age 72) and T (age 59) … Continue reading

Undocumented loans 

The informality associated with loans between family members can lead to later disputes when different interpretations of the transaction emerge. Warin v Warin is a case in point. In that case $367,903.90 was advanced to the Warins’ daughter. The loan comprised: $100,000 that was initially secured by mortgage in 1997 $141,749.70 that was loaned to … Continue reading

Gift or loan – that old chestnut …

This blog might just as easily be entitled “No-one ever said if only we hadn’t documented that loan agreement”.  Zhang and Li v Li relates to an advance of $335,500 from Ms Li’s parents to Ms Li and her husband. After Ms Li and her husband separated her position was that the advance was a … Continue reading

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

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