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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
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
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
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
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
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
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.
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
Commentators and advisers have been divided regarding whether or not gifts made by couples are aggregated for residential care subsidy purposes. A decision by the High Court that gifts are aggregated, has now been up-held by the Court of Appeal. So what does this mean? Simply, for a person with a spouse or partner, gifts … Continue reading
It is common for life insurance policies to be assigned to trustees. However, less common is the establishment of any sort of frame-work for reviewing these policies. Issues that spring to mind in no particular order include: does the policy represent value for money? This is particularly relevant as the insured ages and premiums increase. … Continue reading
Matters of Trust 