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Allegations of sham are commonly made, but rarely made out. Accordingly the case of Rosebud Corporate Trustee Limited v Bublitz makes interesting reading. The judge does not keep us in suspense long, coming out with his finding at p. 5 that the trust is a sham. One of the major players in this story is one … Continue reading
Beneficiaries are often disappointed in the actions and decisions of trustees. Sometimes with cause, sometimes without. However, few beneficiaries seek court assistance, despite their right to do so. It is presumed that this is for reasons that include the difficulties in galvanising classes of beneficiaries to take action, the cost of doing so; and in many … Continue reading
Discretionary family trusts can last, at present, for up to 80 years. While the Law Commission has suggested this should be extended to 150 years, in many circumstances just 80 years is too much. Trusts take management and prospective planning, and sometimes good management means making practical decisions that people might not like. It also means … Continue reading
Caveats can be useful for preventing property being transferred when it might defeat the caveators real ability to recover a debt owing or the due return on an unregistered property interest. However, to maintain a caveat it is necessary to show not only a debt or interest, but also how this debt or interest is connected to … Continue reading
It is fundamental to the role of a trustee that the trustee must act in the best interests of all of the beneficiairies. This obligation can be sorely tested when the trustees are separated spouses or partners. Many do not pass the test. When trustees cannot work together the prudent course of action is for … Continue reading
The facts ma’am, nothing but the facts. When the facts relate to a contract with trustees, the proposition becomes the trustees ma’am – nothing less than all the trustees. Trusts are not legal entities. Regardless I commonly see contracts between the A Trust and another contracting party. This is a dangerous practice because how is … Continue reading
Settling a trust together seems to be the obvious next step for so many couples. Once upon a time it was monogrammed towels. Now it’s seeing your name on a trust deed. But when the going gets tough the reality is, dividing linen is much easier than dealing with a trust. One of the reasons … Continue reading
The Supreme Court has dismissed an appeal against the decision of the Court of Appeal (upholding the High Court decision) in Glover v Glover where the court found that a ruse was not a sham. Briefly a bare trust arrangement entered into to avoid a tax impost was found to have achieved its object and accordingly … Continue reading
The common intention constructive trust is a rare beast. When trying to make such an argument it is essential to have the facts right as demonstrated in the decision in Ridge v Parore (Common Intention Constructive Trust, or not). The cost of getting the argument wrong in an argument that the court described as “doomed … Continue reading
Trustees do not always get on as well as is necessary to do the job of being a trustee. Friction in the trustee relationship can arise for many reasons, often, but not always, the friction relates to the break down of a family relationship. When trustees cannot get on the issue to be determined is … Continue reading
Matters of Trust 