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Principles are important. But who should fund them? When acting as a trustee, it is generally accepted that the trustee will be reimbursed by the trust for any costs incurred. However, it is important to appreciate that this principle has a caveat – the costs must be reasonably incurred. New Zealand Māori Council v Foulkes … Continue reading
A bare trust is a trust where the trustee’s only duties are to hold the trust property, take reasonable care of it; and transfer the property to or as directed by the trust’s beneficiary. The duties of a bare trustee are passive (unlike the “normal” position where trustees have positive duties to manage and exercise their … Continue reading
Some cases go on for ever. Long after reason leaves the building, there is a determination that eventually right will prevail. Sometimes that doesn’t happen. Sometimes that doesn’t happen because the original perception of what was right was wrong. Sometimes it is because there simply isn’t proof of what it is believed to have happened. … 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
On bankruptcy the bankrupt’s assets pass to the Official Assignee (Assignee). However, when the bankrupt is a trustee matters are less clear. The decision in Mawhinney v Environment Court highlights the complicated juxtaposition of the rights a bankrupt trustee has when the trustee wants to seek judicial review of the costs order that lead to … Continue reading
Knowing all the answers can seem an important measure of competence. However, a greater measure is knowing when you don’t. I remember a partner I once worked for who would say to me “Vicki, I just can’t fit all that into my little pea brain – you’re going to have to make me understand that.” … Continue reading
Relationships and trusts can be poor bedfellows. While it can be prudent to protect trust assets from a new relationship partner; the extent of protection provided will be significantly diminished where: the new partner meets trust expense’s the settlor / trustee runs personal and trust expenses through the trust account the history of trustee resolutions … Continue reading
Sometimes I can’t say it any better than another trust professional.The following from Lindsay Pope highlights the too-often overlooked issues that can arise as professional advisors and professional trustees lose sight of the important demarcations between their roles: Professional trustee vs professional advisor roles Professional advisers provide advice to clients. In an advice relationship, decisions are … Continue reading
Leave to appeal aspects of the Court of Appeal decision in Clayton v Clayton was granted on 19 June 2015. Now that the initial excitement has passed this writer’s mind has turned to what the Supreme Court might decide. With that in mind I have started to prepare a wee wish list as to the questions that I … Continue reading
When a trustee is removed as a trustee of a trust; say pursuant to a power of appointment and removal of trustee; it is necessary to separately arrange for the transfer of any trust assets to the remaining and any new trustees. However, some trustees are not happy about being removed as trustees and may … Continue reading
Matters of Trust 