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trust

This category contains 38 posts

The passage of time

Times change, and so do charitable purposes. The recent case of Re Otago Foundation Trust Board highlights that even a charity set up with the best of good intentions might run the risk of becoming moribund owing to societal changes. The original trust was settled under the will of Robert Campbell in 1904. It left … Continue reading

Never presume

H.W. Fowler’s opinion was that in using presume, the speaker believes the supposition is true and will believe it until he learns otherwise. In using assume, the speaker feels no certainty that his supposition is true or not. In a legal context, presume means “to take as proved until contrary evidence is presented.” Ex. The … Continue reading

More trustees sent to the naughty corner

Clement v Lucas concerns a family farming enterprise and illustrates the difficulties when beneficiaries cannot agree on how to give effect to the protections parents have put in place for the benefit of the beneficiaries. The contest at the heart of the matter was whether the trustees should distribute the trust assets equally between the … Continue reading

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

The future of trust administration

The roles of trustees and trust administrators can be a rewarding but difficult role.  With the prospect of a Trusts Act in the foreseeable future (see Trusts Bill released 1 august 2017) trustees and trust administrators need to be match fit.  Increased reporting obligations under CRS, AML/CFT and FATCA are another matter for consideration. For … Continue reading

Disclosure request declined – 24 years a leap too far for a beneficiary who had already received 25%

As noted by Woolford J in para [1] Addleman v Lambie Trustee Limited relates to “an unfortunate dispute between sisters as to what level of disclosure is appropriate for the affairs of the Lambie Trust (the Trust)…” Prudence and Annette are sisters.  In1972 Annette broke her spinal cord diving into a tidal pool in Sydney … Continue reading

Trustees’ dilemma – how old is old enough to know?

The moral dimension of trusteeship arises in many contexts. The recent New Zealand court decisions concerning information obligations to beneficiaries, and the way this is dealt with in the new Trusts Bill, highlight the difficulty of judging what information is too much or too little to disclose. However, general principles on disclosure bypass the consideration … Continue reading

Family relationship minefield

Editor’s note:  The Court of Appeal decision was released on 19 April 2018.  See Artist in stoush over mother’s will ordered to pay after accusing lawyers of dishonesty. High Court Decision In Sandman v Giboney, Mr Sandman claims that a law firm knowingly assisted a breach of trust by taking will instructions and assisting in … Continue reading

Protecting misdirected trust assets

Dr Love, was the Executive Chairman and a trustee of the Wellington Tenths Trust (the Trust). The Trust manages assets for the Maori people of the Wellington and Taranaki regions. The trustees of the Trust developed a “partnership” business model whereby the Trust  retained ownership of Trust land,  but that development was carried out by third party property developers.  … Continue reading

Resulting trust arises in contractual vacuum

The bare facts of Chang v Lee can be summarised as follows: Ms Lee purchases a property in Sunnynook Mr Chang (Ms Lee’s uncle) advances Ms Lee $275,000 of the $566,000 purchase price The advance was not a gift The terms of the loan advance were incomplete Mr Chang made the advance to Ms Lee on the … Continue reading