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The Rex White Family Trust (RWFT) was found to have failed by reason of uncertainty. While the Court accepted it was appropriate for the trustees to have sought directions from the Court, it was found that they had acted unreasonably by pursuing an argument as to the existence of the RWFT, which was lacking in merit. … Continue reading
The decision in Van Uden v CIR highlights the importance of recognising when a property owned by a trust can comprise a permanent place of abode. The significance of a property being a permanent place of abode is that a person who is otherwise non-resident for tax purposes, will be treated as resident in New Zealand … Continue reading
Para 438 in the decision of MezhProm Bank v Pugachev refers to a phenomenon in patent law known as the Angora cat problem first identified by Professor Franzosi, an eminent academic expert in the field: “Professor Mario Franzosi likens a patentee to an Angora cat. When validity is challenged, the patentee says his patent is … Continue reading
Disclosure of trust information to beneficiaries is commonly considered. However, what of disclosure to the trustees? Consider the case of Daniel v Cundall. In this case Mr Daniel and Mr Cundall were the trustees of a trust. Mr Daniel, a lawyer, says that he left the day-to-day trust administration to Mr Cundall. After a long period of … Continue reading
The moral dimension of trusteeship arises in many contexts. The recent New Zealand court decisions concerning information obligations to beneficiaries, and the way this is dealt with in the new Trusts Bill, highlight the difficulty of judging what information is too much or too little to disclose. However, general principles on disclosure bypass the consideration … Continue reading
Editor’s note: The Court of Appeal decision was released on 19 April 2018. See Artist in stoush over mother’s will ordered to pay after accusing lawyers of dishonesty. High Court Decision In Sandman v Giboney, Mr Sandman claims that a law firm knowingly assisted a breach of trust by taking will instructions and assisting in … Continue reading
The bare facts of Chang v Lee can be summarised as follows: Ms Lee purchases a property in Sunnynook Mr Chang (Ms Lee’s uncle) advances Ms Lee $275,000 of the $566,000 purchase price The advance was not a gift The terms of the loan advance were incomplete Mr Chang made the advance to Ms Lee on the … Continue reading
The Supreme Court decision in Clayton v Clayton changed the trust landscape. But how afraid should we be? Are all trusts vulnerable to Clayton-style challenge? Or just the ones that push the envelope? And, if the latter, how far can one push before there is a problem? A recent decision of Moore J has provided … Continue reading
The High Court decision in Broadbent v Ministry of Social Development, which is essentially a test case, considers whether income derived from gifted assets (sometimes referred to as notional income) can be taken into consideration for income assessment purposes. The general purpose of the Social Security Act 1964, which includes provisions relating to a wide range … Continue reading
The use of corporate trustees is a common response to trustee liability. However, where one of two natural person trustees retires and a corporate trustee is appointed, it is important to consider whether the retiring trustee has been discharged. See ss 43, 45 and 46 of the Trustee Act 1956, which provide: Relevant Legislation 43 Power … Continue reading
Matters of Trust 