A Beddoe order (the name derives from the case Re Beddoe (Downes v Cottam)) is an order made by the court that permits trustees to incur expense on behalf of the trust filing or defending proceedings. A Beddoe order (if obtained) protects the trustees against claims by the beneficiaries that the action should not have been brought … Continue reading
Orders removing trustees and appointing replacement trustees are not uncommon. Such orders can be required in circumstances including incapacity, absence, deadlock or because it is expedient in the administration of the trust for a trustee to be removed and perhaps replaced. However, it is important to appreciate that whether a trustee is removed / appointed … Continue reading
Mr Pratley was a Court appointed executor and trustee of two estates. At the time of his appointment a 2-day hearing had already been set down to determine a claim against the prior executor and trustee. The time-line is as follows: Mr Pratley’s appointment as executor and trustee – 20 October 2015 21 October 2015 Mr … Continue reading
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 over the interest of beneficiaries.” The Royal Court in this case then … Continue reading
Trustees fall out, sometimes to the point where a working relationship is no longer possible. Applications to remove trustees are becoming an increasingly common occurrence. So, should trustees fight attempts to remove them? When is it appropriate to do so, and when not? And what are the potential consequences of misjudged opposition? The recent decision … Continue reading
Two recent decisions regarding directions in the context of charitable trusts provide some useful guidance regarding the parameters of s 66 of the Trustee Act 1956. In line with the title to this blog – the conclusion reached is that it is permissible to ask for directions if lost, but not in circumstances where you … Continue reading
The “Rule” in Hastings-Bass (more properly the rule in Mettoy) invites a court to “wave the judicial magic wand” and void decisions made by trustees, together with the attendant consequences, when trustees have made decisions with consequences from which they now with to resile. The logic of “the “Rule” was to protect beneficiaries. However, where … Continue reading
A grandfather, Mr Greenwood, told his grandson that he could buy his house for $300,000 after his death. He expressed this wish to others, including his daughter (mother of the grandson) who was one of the executors of his estate, although it was not in his 2005 will. This occurred in Christchurch before the Earthquakes … Continue reading
New Zealand may seem a long way away from the rest of the world. However, as demonstrated in Trident Trust Company (NZ) Ltd v Bozo, not so far away as might be thought. The case involves a New Zealand trustee of a trust settled by a non-resident settlor for the benefit of himself his wife and … Continue reading
Trainer v Leake involves a contest between “rival contenders as trustees of a religious trust.” Background The Hawkes Bay Revival Centre is a church founded in 1986. It is run under the auspices of the Hawkes Bay Revival Centre Trust, a trust established by Trust Deed to hold real and persona; property “for the benefit … Continue reading
