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The relationship between trusts and relationship property agreements requires careful attention. Whether or not trustees can or should be party to a relationship property agreement is one of many important considerations. Another consideration is how debts owing by trustees should be treated for relationship property purposes. Importantly, if there is no relationship property agreement (and assets are … Continue reading
Powers of attorney and deeds of delegation can be useful, especially where a trustee may be absent from New Zealand for periods of time. However, the extent to which trustees can rely on decisions made where one trustee has acted in a personal capacity and under a power of attorney require consideration. Consider the facts in … Continue reading
Following the end of a relationship “going it alone” is a practical reality. However, where a trust was settled during the relationship, the extent to which one can “go it alone” needs to be carefully assessed. This reality, and the consequences of failing to address it are highlighted in the High Court decision in Nichols … Continue reading
The Court of Appeal decision in Cowan v Martin highlights the need to clearly identify when parties are acting as trustees or the trustees’ agents. While in this case the agency argument may seem a little contrived, and is available only because of the commonality of capacity and parties, the case remains instructive. The lessons … Continue reading
Buying the family farm can seem a rite of passage. However, given the value of most farms inter-generational assistance can be required so that this can happen. Commonly, this assistance can take the form of an on-demand loan. While not stated, the practical reality is that if the children stay in Mum and Dad’s favour, no demand … Continue reading
Trusts are settled with the best of intentions – and given that a discretionary family trust can last for up to 80 years – long term intentions. However, when the settlors fall out, those intentions can fall victim to the relationship fall out. So what are the trustees to do? There may be trust property … Continue reading
The Court of Appeal has dismissed as aspects of an appeal of a High Court decision upholding a loan between trusts following the breakdown of the borrowing trustees’ relationship. See Trustees until divorce us do part.
On 22 December 2014, Inland Revenue released draft Public Ruling PUB0209: “Income tax — whether a beneficiary will be treated as a settlor”. The Public Rulings consider whether a beneficiary of a trust who has a current account can be a “settlor” of the trust for income tax purposes under s HC 27(2)(a) or (b) of the Income Tax Act 2007. … Continue reading
Some cases will never settle. Stokes v Insight Legal is one of them. In this most recent trip to the High Court the defendants (Insight Legal et al) have sought leave to appeal the High Court decision Stokes v Insight Legal [2014] NZHC 2475. This decision was largely procedural and related to matters that had … Continue reading
In the Matter of Te Kohanga Reo National Trust considers the powers available to the High Court when one trustee is concerned to prevent his removal as a trustee; and to ensure proper participation in trust matters while still a trustee. In considering an application for an injunction to address these matters (the background being … Continue reading
Matters of Trust 