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insolvency

This category contains 10 posts

Bankruptcy and abuse and of course a trust or two

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

Trusts and puppies

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

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

A wander through trustee liability

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

Directors pinged trustees “safe”

However, as the directors and trustees are one and the same, perhaps a difficult pill to swallow nevertheless.  The case of Owens v Shaw is a little hard to make sense of given that the trustees of a trading trust, also traded through a company (on behalf of the trust) on account of one supplier who … Continue reading

I might change my mind

A trust is settled. The settlors are trustees together with an independent trustee.  The settlors’ marriage breaks down and they are no longer able to exercise their trustee powers.  Everyone is busy attempting to remove and replace trustees to wrest control of the trust.  Inevitably the matter comes before the court. What is the court to … Continue reading

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

Providing trust assets does not ensure later control

It may seem somewhat trite law that once a trust is settled, the settor loses the right, by virtue of having made that settlement, to control the trustees.  To put this another way, just because you are the source of the trust’s assets, you cannot determine how these assets are utilised.  This fundamental proposition of trust … Continue reading

Court appoints receiver to trust

In Bank of New Zealand v Rowley and Skinner [2012] NZHC 2835 the High Court determined that it could have the jurisdiction to liquidate a trust.  See Liquidation of trusts – more clever ways to winkle assets from trusts for the background facts. The matter has now been reconsidered, following service of the judgment referred to … Continue reading

Corporate trustees – whine whine whine

The recent decision in SW Trust Limited v Grandad’s Limited highlights, yet again, the number of corporate trustees operated by professionals that accept multiple trustee appointments but that do not appear to wish to be in the trustee business. In the judgment it is noted that: “First, the applicant is a corporate trustee. It was … Continue reading