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Trustees

This category contains 176 posts

Beddoes and beyond

By way of background in Vincent Family Corporate Trust Limited (as trustee of the ET and P Vincent Trusts) as noted by Van Bohemen J (above and below): In Vincent Family Corporate Trustee the parties were urged to find resolution. When this was not possible the court was required to determine matters. Helpfully, Van Bohemen … Continue reading

Damp Squib

Being a trustee is increasingly more skittles than beer. “Beddoe orders” are an avenue for trustees to pursue or defend proceedings without facing personal liability. McCallum v McCallum concerns an appeal against partial Beddoe orders. At the opening of his novel Anna Karenina, the Russian novelist Tolstoy writes “All Happy families resemble one another, but … Continue reading

Anathema to a trust

Transferring assets that might otherwise comprise relationship property to a trust, might appear an attractive alternative to “I love you” but not enough to share my stuff with you. However, even if the relationship is not yet a qualifying relationship for the purposes of the Property (Relationships) Act 1976 (the Act); dispositions to trust can … Continue reading

No fraud here

Legler v Formannoij relates to a spirited challenge to the appointment of a corporate trustee to act as the sole trustee of a trust. The arguments put to the court included the contention that this was a fraud on a power as the director and one of the two shareholders was formerly a trustee and … Continue reading

It’s mine said the trustee, all mine

The background to the appeal in Lambie v Addleman is encapsulated in [8] and [9] of the decision where the Supreme Court states as follows: The factual background is set out in Whose advice is it?; Rights to information prevail; and Disclosure request declined – 24 years a leap too far for a beneficiary who … Continue reading

Barring further claims

It is not uncommon for trustees to seek a release from beneficiaries prior to the final distribution of trust assets.   However, where beneficiaries are reluctant or unwilling a trustee may quite properly be concerned to protect the trustee’s position in the event of a subsequent claim. The avenues to address such a consideration were canvased … Continue reading

Between Buckton and the deep blue sea

Trustees looking for certainty regarding costs will commonly turn their minds to a Beddoe application. However, where costs are a live issue and the grounds for a Beddoe order may not be made out, an alternative course of action is to seek a prospective costs order.  While this may appear largely the sole dominion of … Continue reading

Certainty and protection

The purpose of a Beddoe application as set noted in Representation of X Trustees re D and E Trusts is to “.. provide certainty and protection to a trustee by predetermining the question of whether costs incurred in third party litigation were reasonable and should be borne out of the trust fund.” In considering whether … Continue reading

Turning of the tide?

McGuire v Earl is a successful application for the following trust information: statements of accounts copies of all Minutes and Resolutions any documents pertaining to any distributions all documents pertaining to any gifting or debt incurred, and bank statements for all bank accounts. The trust in question was settled by Mr McGuire’s father and Mr … Continue reading

Judgemental and pejorative

Law v Law relates to an application by trustees for directions under s 66 of the Trustee Act regarding the proposed distribution of trust assets. The background of the case is essentially set out at [24] as follows: “Again, the Trustees appear to have approached the question of the payments to Elena with a primary … Continue reading

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