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Trust review

This category contains 10 posts

How afraid should we be of Clayton?

The Supreme Court decision in Clayton v Clayton changed the trust landscape.  But how afraid should we be?  Are all trusts vulnerable to Clayton-style challenge?  Or just the ones that push the envelope?  And, if the latter, how far can one push before there is a problem? A recent decision of Moore J has provided … Continue reading

Two trustees go down to the woods … one is discharged, one is not

The use of corporate trustees is a common response to trustee liability.  However, where one of two natural person trustees retires and a corporate trustee is appointed, it is important to consider whether the retiring trustee has been discharged.  See ss 43, 45 and 46 of the Trustee Act 1956, which provide: Relevant Legislation 43 Power … Continue reading

Using enduring powers of attorney to exercise trustee powers

The issue of incapacitated trustees is not a new one.  Trustees continue to age and many do not retire when they can still elect to do so.  This leaves the issue of removing incapacitated trustees and transferring property held by them to continuing and new trustees. While it is generally accepted that an attorney under an … Continue reading

You aren’t my beneficiary – are you??

Certainty as to object, that is, who the beneficiaries of a trust are is one of the three certainties required to evidence a valid trust.  See Davis v White. However, what is the position where it is clear that a person or company or trust is a beneficiary – it is just that had the … Continue reading

Trustees lost at sea?

I often describe trusts to new clients by reference to puppies.  A lovely idea – and a very important life time companion.  However, trusts like puppies need a lot of support, maintenance and there needs to be someone to clean up. I was pleased then to see Lindsay Pope today analogising accepting an appointment as a trustee … Continue reading

Update on the Review of the Law of Trusts

A new “Trusts Reference Group” has been established by Minister of Justice Amy Adams to help update and improve the law governing private trusts. Ms Adams has stated that in a media release made on 29 May 2015 that “it’s important that trust law is fit for purpose and does not create unnecessary costs.” The Trusts Reference Group … Continue reading

Trustees and dementia

The early signs of dementia can be subtle.  Although dementia can occur at any age, it is far more common amongst the older demographic. Accordingly, while lawyers and accountants, and trustees generally are rarely mental health experts, it is important to say alive to the early signs of dementia so that risks can be identified … 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

Trust review

The fifth issues paper on the Review of the Law Trusts: “Court Jurisdiction, Trading Trusts and other issues: Review of the Law of Trusts” was issued today.  The paper is available from the Law Commission. The paper will be progressively reviewed and commented on at the Review page of this blog.

Taxation of Australian trusts under review

New Zealand isn’t the only jurisdiction carrying on a love affair with trusts.  Although the numbers of trusts in Australia, once population adjusted, are less per head than in New Zealand, the numbers are significant with the Australian Tax Office reporting over 660,000 trust tax returns for the 2008-09 year.  These trusts spanning a broad range of industries … Continue reading