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Asset protection is a common reason for settling assets onto a trust. However, where there are debts owing from trustees back to the settlor, these debts remain an asset in the settlor’s hands. How such debts are treated following bankruptcy is explored in the Official Assignee v Black. In that case Nigel Black (Nigel) and … Continue reading
The Federal Court of Australia decision in Fotios v Helios Corporation Pty Ltd (No 3) has deviated from the Privy Council’s recent decision in Equity Trust (Jersey) Ltd v Halabi , which held by a majority that trustees and former trustees shared liability pari passu on insolvency (see No ranking between trustees). It remains to … Continue reading
The background of this matter is set out as follows in Cooke J’s judgment: In Armani v Armani Walker J considered the threshold for the appointment of a receiver in the following terms at [86]: My view is that the ordinary meaning of “reasonable necessity” does not precisely equate with a measure of “last resort” … Continue reading
But it is still property! The High Court decision in Ruscoe v Cryptopia Limited (In Liquidation) concerning an application for directions by the liquidators of a cryptocurrency trading exchange online platform, builds on concepts of property explored in Clayton v Clayton. By way of background, Cryptopia Limited (Cryptopia) was placed in liquidation in May 2019 by its … Continue reading
The background of this matter is set out at [1], [2], [3] and [4] of the High Court judgment as follows: [1] The plaintiff, Camray Farms Ltd (Camray), and the second defendant, the Gordon Moore Trust (GMT), each claim priority to the proceeds of sale of properties in Ohaupo known as the Neighbouring Property and … Continue reading
Editor’s note: this decision has been appealed. See First up, best dressed. As noted in Representation of Rawlinson & Hunter SA re Z Trusts at decision of the Royal Court of Jersey at [2] a trustee’s equitable lien is a “device of equity granted to trustees by the Court to give them rights of indemnity and priority … Continue reading
Boy meets girl. Boy marries girl. Boy bankrupts girl after she fails to pay $12,263.50 of court costs. Girl’s appointment as trustee and appointor of two family trusts is terminated by her bankruptcy. Aint love grand? Anne (the girl in this narrative) remains a beneficiary of the trust that owns the family home where she … Continue reading
When settling a trust it can be useful to consider what happens next. In this regard the settlement of a trust can be likened to that moment in the pet shop where this adorable puppy all paws and nose and licky tongue and waggy tail and soulful eyes uses its artillery of cuteness to attack … 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 background to Fawcett v Official Assignee is relatively straight-forward, as is the result. However, the highways and by-ways the decision takes to get there are a study in why very few people should be trustees, and even less would want to be. The case relates to a poorly constructed pedestrian bridge that was ultimately ordered … Continue reading
Matters of Trust 