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The devil is in the detail. Sometimes, so is the GST. Prior to compulsory zero rating of land transactions it was common to use the GST-refund to fund the deposit. However, in the event the sale did not go ahead, the GST needed to be re-paid. So if the deposit was forfeited then, well, that … Continue reading
Previous blogs have talked about the dangers of failing to differentiate between trust and the trust’s settlor (or some other “related” party). This is also the case when it comes to recognising who is entitled to deductions for trust expenditure. A TRA (Taxation Review Authority) decision, since upheld on appeal to the High Court (see Brown … Continue reading
It has been a long time in the making. Today (11 September) the Law Commission’s Report, Review of the Law of Trusts: A Trusts Act for New Zealand, was tabled in Parliament. The Report recommends the introduction of a new Trusts Act to replace the current Trustee Act 1956. The proposed new Trusts Act will be … Continue reading
New auditing and review requirements have been announced that will apply to charities with annual exenditure of $500,000 or more. Currently all registered charities are required to attach financial statements to their annual returns. New requirements announced this week will provide that charities with annual expenditure of $500,000 or more will need to have their financial statements reviewed … Continue reading
The decision in Roberts v Francis further highlights the need to respond to beneficiaries’ information requests in a timely fashion. The background facts can be summarised as follows: Dr Roberts died intestate His wife obtained letters of administration The beneficiairies of his estate, as determined by the Administration Act were his wife and his children … Continue reading
Commentators and advisers have been divided regarding whether or not gifts made by couples are aggregated for residential care subsidy purposes. A decision by the High Court that gifts are aggregated, has now been up-held by the Court of Appeal. So what does this mean? Simply, for a person with a spouse or partner, gifts … 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
Other blogs have noted what poor bedfellows trusts and relationships make. This observation is supported by the recent decision in Spence v Lynch . Paragraph 3 of Priestley J’s decision in this case neatly setting the scene for the ultimate show down that could be paraphrased “bad things happen to bad trustees.” “[3] The relationship of the man and … Continue reading
Matters of Trust 