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Draft interpretation statement PUB00261: Income tax – taxation of trusts has been released for consultation. PUB00261 summarises the tax law as it applies to trusts and when finalised it will replace the Commissioner’s original statement on the trust rules in the “Explanation of Taxation of Trusts” in the Appendix to Tax Information Bulletin Vol 1, … Continue reading
Estates can take time to administer and distribute. Beneficiaries can tire of waiting. Or they might require funds to sue the executors or other stuff. The remedies available to beneficiaries depend on part as to whether the estate has transitioned from the administration phase. See transition from executor to trustee. This was of relevance in … Continue reading
In Davis v White (see You aren’t my beneficiary – are you??) a trust was found to have failed by reason of uncertainty. The second hearing of the matter related to costs and is a sobering tale for trustees. Mrs White who incurred significant costs (AUD 40,893 and $85,369.50 in New Zealand, plus disbursements) said that the proceedings could … Continue reading
The issue of incapacitated trustees is not a new one. Trustees continue to age and many do not retire when they can still elect to do so. This leaves the issue of removing incapacitated trustees and transferring property held by them to continuing and new trustees. While it is generally accepted that an attorney under an … Continue reading
As noted in the judgment McLaren v McLaren at [1] this case relates to “… a sorry tale of what can occur when a family adopts an inappropriate form of trust deed without adequate advice or sufficient understanding of the legal effect of its terms. In this case, a son who was given a power … Continue reading
Corporate trustees are a common feature of modern trading trusts. The basic rationale is that the use of a company means that any liability that would otherwise accrue – say to a natural person trustee – accrues instead to the company and provided the directors do not breach the duties owed under the Companies Act … Continue reading
The transfer of a family home to a trust is a relatively routine occurrence. The general order of events is: settle trust execute agreement for sale and purchase carry out any gifting get bank consent register transfer What happens if the last step does not occur? Has the sale in fact been effected? Particularly in … Continue reading
One of the stated purposes behind the proposed new Trusts Act (currently in the form of a draft bill) is to make trust law clearer and more accessible. Laudable, but is it realistic? The naysayers need not go much further than the decision in NZ Natural Therapy Limited (in Liquidation) v Little. A little bit of background … Continue reading
This blog, which might just as easily be entitled “Flat earth Society members need not apply”, considers the charitable status of cryogenics research. “[1] The possibility of life after death is, perhaps, one of humanity’s oldest preoccupations. Resurrection is at the heart of Christian ideology. And from Mary Shelley’s Frankenstein, HG Welles’ When the Sleeper … Continue reading
14 years since the paper Some Problems in the Law of Trusts was released a draft Trusts Bill has been released for consultation. The draft Bill largely reflects the recommendations from the Law Commission’s review of trust law that commenced in 2009 culminating in a final report that was released in 2013. The Bill has been introduced to address problems with current … Continue reading
Matters of Trust 