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Family trusts can generally run for up to 80 years. That puts quite an onus on the settlor to get it right. It also means that where beneficiaries are defined by reference to children and grandchildren there can be a significant number of beneficiaries over time. Jones & Ors as Trustees v Collings & Ors there … Continue reading
There are currently 27,322 registered charities in New Zealand with a combined reported annual income of $16,505 million. What is sometimes overlooked is all the people behind the scenes who make all this happen. Making sure that everyone who makes these things happen know their responsibilities and obligations is a significant undertaking. It has been reported … Continue reading
Beneficiaries of a trust – including a testamentary trust are entitled to information relating to the trust. In the Goodman v Campbell a minor beneficiary’s mother sought appointment as a litigation guardian following an executor’s refusal to provide information about the estate of which her minor son was the sole beneficiary. The trustee of the … Continue reading
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
