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Trustees

This category contains 124 posts

Hastings-Bass revisited

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

Generosity can have its limits

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

Not very hidden

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

Rival contenders as trustee

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

It’s not a beauty parade

Trusts are commonly used for secession planning  providing, at least conceptually, for long-term asset ownership that will not be disrupted by death.  That’s the theory anyway.  However, the passage of time and the appointment and removal of trustees can mean that once harmonious relationships and arrangements are no longer so. The decision in Guest v … Continue reading

Removal of trustees

As noted in Van Boxel v Van Boxel at [4] “The application arises in what are familiar circumstances to this Court. The Trust owns a number of properties of which all three trustees are registered proprietors. Although Mr van Boxel holds enduring powers of attorney from his wife it is a matter of record that … Continue reading

Mistakes abound

CIR v Robertson relates to the recovery of GST paid by the Commissioner of Inland Revenue from the liquidator of corporate trustee Hukatere Coastal Trustees Limited (Hukatere) that received the GST in question. The case is a relevant reminder of the importance of recognising the corporate aspects of trustees and the risks to liquidators when … 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

Myths and liability

Trustees act personally.  As noted in the Supreme Court judgment in Macalister Todd Phillips Bodkins v AMP (emphasis added): “Liabilities incurred by a trustee in relation to a trust are always the personal liabilities of the trustee … A creditor has a personal right to sue a trustee and to get judgment and make the … Continue reading

The blessing of the court

Being a trustee is hard, and at times quite possibly boring (to paraphrase from the movie An Education: Emma Thompson and Carey Mulligan).  And worse, if you get it wrong the beneficiaries can sue you, no matter how hard a trustee might try to get it right. Fortunately, help is at hand in the form of … Continue reading