-
Subscribe
Subscribed
Already have a WordPress.com account? Log in now.
Vanity Fair is an unlikely source of interest for people whose minds turn more often to trusts than trust fund babes. However, a line in Vanity Fair’s recent interview with Ned Lambton, the seventh Earl of Durham, after whose ancestor Wellington’s Lambton Quay was named (the first New Zealand connection), warrants further consideration. Discussing his … Continue reading
Although liquidation is generally thought of in the context of companies, it may be possible for a trust to be liquidated. In what appears to be the first proceedings of their kind the Bank of New Zealand (BNZ) has made an application for liquidators to be appointed to two insolvent trusts. As a starting point … Continue reading
Trustees contract personally. This means that unless the trustee’s liability is limited by agreement, a trustee is, in most circumstances, personally liable for any losses that arise. This is the case whether or not the trustee can benefit from the trust. “… if the trustees meant to limit their liability, it was for them to … Continue reading
The terms minutes and resolutions are used interchangeably in the context of trusts. Minutes and resolutions are used to record trustee decisions. Whether these terms are in fact interchangeable and if there might be implications arising from the use of one or the other is not clear. The major texts consulted are silent on the … Continue reading
A trust can run for up to 80 years at present. While the odd relationship clocks up similar tenure, like trusts many are brought to an end sooner than death does them part. Some settlors of trusts, or their canny advisers, consider the possibility of the relationship not lasting the distance and draft the deed … Continue reading
Trustees are personally liable to meet trust debts. However, difficulties can arise when a trustee has concerns regarding the bona fides of creditors. This issue was considered by the Court in Public Trust v Conway Madison Group Limited (In Liquidation). Background The Public Trust was appointed as a trustee of the Madison Family Trust (the Trust). Following … Continue reading
This week’s High Court costs decision in Black v Giltech Precision Castings makes sobering reading for trustees. The judgment follows a substantive decison finding against Mr Black and the trustees of of a trust settled by Mr Black. The independent trustee resigned just prior to the matter being heard. However, when costs were considered, this did little … Continue reading
The Court of Appeal has overturned the High Court decision of Commissioner of Inland Revenue v Newmarket Trustees Limited. Ed note: Newmarket Trustees Limited was placed into liquidation on 12 October 2012. Newmarket Trustees is a corporate trustee that acts for a number of trusts. Newmarket Trustees is insolvent due to unmet tax liabilities in … Continue reading
Protectors, although perhaps not a common feature in discretionary trusts, pepper the trust landscape. What is a protector? There is no agreed definition of protector. As a general principle a protector is a person who, although not usually a trustee, has been granted certain powers relating to the trust. These powers range from powers to veto trustee decisions, to powers to … Continue reading
Inland Revenue has released Interpretation Statement 12/02: Income tax – Whether income deemed to arise under tax law, but not trust law, can give rise to beneficiary income. Interpretation Statement 12/02 (IS12/02) confirms the Commissioner’s view (outlined last year in IS1110: see Tax law review of whether deemed income is beneficiary income) that in some circumstances, … Continue reading
Matters of Trust 