STOP THE PRESS: Spencer v Spencer HC Wellington, 19 October 2011.
The High Court held the trustees of a family trust in the recent case acted dishonestly and therfore the trustee exclusion clause in the trust deed did not afford them a defence.
Breaches of the trust noted in this case:
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Trust paying inflated fees to a related company
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Failing to make income payments to a named beneficiary on the basis that the trustees believed that adequate income was available from other sources
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Settlor charging management fees to the trust through a related company
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Failing to recover outstanding debts
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Failing to charge interest on outstanding debt and advances to beneficiaries
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Failing to recover rent from an associated company
Watch TEO Training's Trust Under Siege webinar to be aware of your obligations and responsibilities.