This tag is associated with 5 posts

Know your place

Sometimes I can’t say it any better than another trust professional.The following from Lindsay Pope highlights the too-often overlooked issues that can arise as professional advisors and professional trustees lose sight of the important demarcations between their roles: Professional trustee vs professional advisor roles Professional advisers provide advice to clients.  In an advice relationship, decisions are … Continue reading

Removing trustees

The appointment as trustee involves significant responsibility and, in some circumstances, it is inthe best interests of the beneficiaries for a trustee or trustees to be removed. Most commonly a trustee will retire or can be removed pursuant to a power of removal where animosity or other concerns may cloud judgment.  However, in some circumstances, … Continue reading

Safe Harbour from Penny and Hooper needs to be navigated with care

On 31 August 2011, Inland Revenue issued Revenue Alert RA 11/02.  This Revenue Alert sets out the Commissioner’s views in response to the decision in Penny and Hooper as to when diverting personal services income through an associated entity such as a trust will constitute tax avoidance. Key provisions The main points of the Revenue Alert can be … Continue reading

Unsuccessful claim of constructive trust on account of work carried out

The recent case of Three Chicks  v NZ Building Projects raises the novel question – can a remedial constructive trust be claimed in respect of work carried out under a contract? By way of background Three Chicks, the owner of a property, assigned a building contract to NZ Building Projects. Following the completion of the … Continue reading

Jurisidiction, divorce and trusts

Jurisdictional issues involving trusts are common in a tax context due to trusts being variously tax-resident in one jurisdiction or another depending on the residence of trustees and settlors.  Due to the mobility of settlors and trustees trusts can be resident in more than one jurisdiction with, at times, significant tax consequences. However, until recently the jurisdictional … Continue reading