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Although not common, in some circumstances an inheritance paid to a New Zealand resident can be taxable as a distribution from a foreign trust. In PUB00494 Income tax – Whether money or property received by New Zealand tax residents from overseas is income from a foreign trust, Inland Revenue considers the income tax treatment of … Continue reading
Testamentary trusts arise in many circumstances and for many reasons. In Castle Trustees Limited the deceased provided for the residue of his estate to provide income for his children throughout their lives with a 1/4 share of the total residuary estate being distributed in equal shares to the grandchildren following the death of each child. … Continue reading
In Gallagher-Dekker v Gallagher Anderson J carefully traverses the matters the Court will take into consideration when deciding whether trustees of a testamentary trust should be removed and replaced with a professional trustee. By way of background: Sections 112 and 114 of the Trusts Act 2019 provide that the Court may remove a trustee and/or … Continue reading
Connolly v Eckhout traverses the application of the little known Imprisonment for Debt Limitation Act 1908 to a person acting in a fiduciary capacity. By way of background: … Ms Eckhout did not pay the judgment sum. The High Court has limited powers to issue an arrest order where requirements that are largely drawn from … Continue reading
The background to Hamilton v Kirwan can be set out as follows: A 58.9450 hectare block of rural land (the Property) was purchased in 1984 In December 1997 the Property owner’s daughter began living on the Property. In 2000 she built a dwelling on the Property part of which was funded by a $20,000 advance … Continue reading
Families are funny old things. Blood is thicker than water (fact). But when it comes to who should get the most after Mum and Dad have died, perceptions can become quite skewed. In Ngui v Ngui the surviving parent left her estate to her four children in equal shares. So far so fair. However, one … Continue reading
McCallum v McCallum relates to applications for discovery of information including trustee legal fees, trustee resolutions and legal advice received by trustees. The case considers important procedural aspects of when discovery can be sought, the rules that apply to originating applications and the extent of discretion available to the High Court regarding such matters. Of … Continue reading
Jellyman v Jellyman is about two children with different views as to what is in their mother’s best interests. The matter came before the court because Mrs Jellyman was a trustee of a testamentary trust under her late husband’s will. Her son Maurice was the other trustee. Mrs Jellyman wanted to sell her home in Hastings … Continue reading
The rule in Saunders v Vautier is generally well understood. However, the parameters of the rule are less clear. As noted in the Law Commission’s Third Issues Paper on the Review of the Law of Trusts “Perpetuities and the Revocation and Variation of Trusts”: The scope of the rule has become wider than merely allowing a … Continue reading
On first blush Kinney v Pardington appears to set the bar for Family Protection Act (FPA)claims at an almost unprecedented 70% in the context of one of three children claiming a breach of moral duty. However, when the facts are considered, the context of this case, may set it apart due to the very specific … Continue reading
Matters of Trust 