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A recent application for variation or rectification of the deeds of two mirror trusts highlights the need for careful consideration when drafting deeds of trust. The deeds in question define the Final Beneficiaries to include the husband/wife (as relevant) of each settlor. Some years later the husband and wife separated and their marriage was subsequently dissolved. The … Continue reading
Relationships and trusts are poor bedfellows. I have said this before. Another way of expressing the sentiment is that trustees and spouses/partners are equally poor bedfellows. The difficulty being that the dividing line between Mrs Smith – wife and Mrs Smith trustee can blur. The consequence of this blurring, and the hard cold cost, was sheeted … Continue reading
The default decisioin making position with a trust is that trustee decisions must be unanimous unless there is a provision in the deed of trust that specifically permits majority decisions. Where discretionary trusts permit majority decision making, trustees can find themselves liable for decisions that they were not party to. However, where unanimity is required … Continue reading
Or am I? The unsuccessful summary judgment application in Herron v Wallace highlights the importance of being able to evidence appointment as trustee. In this case the plaintiff was seeking to recover over $2.5m under a deed of settlement and a deed of acknowledgment of debt. Due to the plaintiff’s intervening bankruptcy it was essential … Continue reading
I’ve taken some liberties with the heading, the couple in question may not yet be divorced. They are separated. In a sequel to a previous blog regarding litigation to determine whether a $1.22 m loan was in fact a gift the High Court has determined that the sum in question was in fact a loan. Background … Continue reading
Deeds of trust contain the rules by which trustees are to operate. However, what are trustees to do if one or more trustees acts in defiance of these rules? While hind sight is 20/20 the starting point has to be to not actually let a trust get into a position where one trustee can call … Continue reading
New Zealand, land of the long white cloud, lots and lots of sheep; and just about as many trusts. What happens to jointly settled trusts when the settlors’ relationship has come to an end? Well often, not much. Literally. The settlor/trustees cannot reach agreement on anything, the independent trustee (if there is one) is either … Continue reading
Anti-money laundering, counter financing of terrorism could be coming to a trust near you soon. The article below was published in the Law News earlier this month. Although pretty dull stuff, the message to take away is some of this stuff might apply to you. Read on (perhaps fortify yourself with a strong coffee first – there … Continue reading
Vicki Ammundsen is presenting a webinar on winding up trusts on 19 June 2013 at 10.30. The one hour webinar will be followed by 1/4 hour for Q and A. This webinar, which will include the opportunity to ask questions, refers to recent case law to canvas why, how and where trustee liability arises; and what trustees … Continue reading
Section 46(4) of the Trustee Act 1956 provided that the High Court could order the appointment of the Public Trust in replacement for another trustee without requiring the Public Trust’s consent. Such a provision is necessary to ensure that no trust can fail for lack of a trustee. However, where the trustee in question is the … Continue reading
Matters of Trust 