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Gifting

This category contains 21 posts

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

Buyer’s remorse

The expression “Beware Greeks bearing gifts” as been attributed to  the story of the wooden horse of Troy, used by the Greeks to trick their way into the city. It is recorded in Virgil’s Aeneid, Book 2, 19 BC: “Do not trust the horse, Trojans. Whatever it is, I fear the Greeks even when they … Continue reading

When the going gets tough – litigate and litigate and litigate …

Some cases seem to have eternal existence.  The original matter of Spence v Lynch is one of these.  The are now at least 9 recorded decisions by my count named either  White v Spence or Spence v Lynch.  The first case was written up in this blog as Dominant trustee architect of loss.  The name was apt then, … Continue reading

Debts owing by trustees “real”

When assets are transferred to a trust by a settlor the transfer is generally by way of gift or sale.  Where assets are sold there is a gift back that can be forgiven immediately, progressively or at some future date, if at all. Prior to the abolition of gift duty gifting programs were common and … Continue reading

Loan debate determined

The Court of Appeal has dismissed as aspects of an appeal of a High Court decision upholding a loan between trusts following the breakdown of the borrowing trustees’ relationship.  See Trustees until divorce us do part.

Trust Fundamentals Webinar

Trusts are the best long-term intergenerational form of asset protection.  However, as litigation involving trusts increases, questions are reasonably asked regarding the “safety” of trusts.  If you are looing for answers or guidance Vicki Ammundsen is presenting a webinar on February 19th discussing the fundamentals of trusts.  Topics covered by the webinar include: Requirements of a valid trust Differentiation between … Continue reading