New Zealand Case Law: Decisions & Judgments

Topic

Distribution of trust assets

Legal area

Court

3 Apr 2023

MACNAMARA v MACNAMARA [2023] NZHC 715

Citation

[2023] NZHC 715
Court

High Court

The Court granted directions approving the trustees' determinations: the rental for Karaka (including 72/28 split) based on independent valuation; the reconciliation of Oneheat accounts and the determination that Mr Macnamara owes Oneheat (total identified); the treatment of defamation defence costs as Oneheat costs and payment of $27,323.75 as an unsecured advance to Oneheat; the apportionment of trustees' costs attributable to Mr Macnamara ($309,028); and the adjustments (including a $200,000 holdback) to be made before final distribution. The Court refused to approve payment directly to th…
3 Jun 2022

DARYN TURVEY v DAVID VANCE [2022] NZHC 1167

Citation

[2022] NZHC 1167
Court

High Court

The Court rectified the 2001 deeds to reflect the settlors' intention, applied the established s133 'blessing' framework and found the trustee's proposed distribution and quantified adjustments were within the range of reasonable decisions on the evidence (relying on valuer and builder reports and Dobson J's directions). The $65,050 advance was treated such that repayment was recognised in distribution calculations but, because of limitation and notional settlor risk, Daryn's personal entitlement must be held in trust for his daughters until age 18; the s126 application was dismissed.
6 May 2021

PUBLIC TRUST v KAIN [2021] NZHC 1000

Citation

[2021] NZHC 1000
Court

High Court

Public Trust is not bound by the 1997 Deed of Arrangement as trustee; for the Waitaha Trust Public Trust must, when reasonably able and consistent with its duties, take into account the Equality Clause for the six signatories to the 1997 deed but is not required to apply equality more broadly to non‑signatory beneficiaries or to other trusts (and cannot take the 1997 deed into account for the Middle Road Block Trust where no signatories are beneficiaries); trustees must take into account the settlor's wishes and may, in principle, treat later inconsistent wishes as overriding earlier ones whi…
7 Aug 2020

In the matter of The New Zealand Guardian Trust Company Ltd (trading as Perpetual Guardian) [2020] NZHC 1982

Citation

[2020] NZHC 1982
Court

High Court

With no effective opposition and no utility in the trustee retaining funds, the Court ordered distribution of the remaining trust assets, allowed an adjustment of $76,000 in favour of Greg and Chris to account for Philip's benefit from occupation and costs caused by his conduct, directed a finite process for storage and disposal of chattels (storage continued to 30 October 2020 with options for uplift or transfer of storage responsibility, thereafter trustee may dispose), confirmed indemnity for trustee and beneficiaries out of trust funds for costs related to administration and litigation, a…
8 Apr 2020

OORSCHOT v CORBEL CONSTRUCTION LIMITED (in liq) [2020] NZHC 723

Citation

[2020] NZHC 723
Court

High Court

The Court appointed the liquidator, Andrew Oorschot, as receiver and manager of the Retention Fund; only subcontractors with calculated and (partly) transferred retentions and subcontractors with released but not paid retentions have claims on the fund; the Retention Fund is to be distributed pro rata (net of a pro rata share of administration costs) as at the date of liquidation; the receiver may deduct reasonable costs and is authorized to pay legal costs of $18,698.64 from the fund without further approval; interest is not payable unless and until all valid non‑interest claims are paid in…
16 May 2018

FREETH v KOKICH [2018] NZHC 1067

Citation

[2018] NZHC 1067
Court

High Court

The Court granted the trustees' application: it found trustees had disclosed assets, the proposed equal distribution to the settlor's surviving children was expedient and in beneficiaries' best interests but impracticable without court assistance, and that after distribution the trust would have no assets so should be wound up; costs were awarded to applicants on a 2B basis.
21 Dec 2017

CLEMENT v LUCAS [2017] NZHC 3278

Citation

[2017] NZHC 3278
Court

High Court

The Court set aside the trustees' initial decision to sell the trust properties and their in‑principle decision to distribute sale proceeds equally because the trustees failed to take into account relevant considerations central to the trust's purposes—specifically the settlors' intention to 'even the ledger' between beneficiaries and pre‑trust distributions—and that failure occurred before and independent of legal advice the trustees later obtained; the matter is remitted to the trustees to reconsider disposition having regard to settlors' purposes and pre‑trust distributions; the Court decl…
17 Oct 2016

SAYES v TAMATEKAPUA [2016] NZHC 2463

Citation

[2016] NZHC 2463
Court

High Court

Because the Woolleys Bay property remained a trust asset until its transfer on 23 December 2015 and could have been renounced by Gerrard until that date, his entitlement remained in credit until that date; accordingly interest earned on trust assets up to distribution should be divided equally among the four beneficiaries and Gerrard must pay interest on his outstanding over-entitlement at 3.5% per annum in accordance with the Court's earlier direction.
16 Aug 2016

STARLING v BAILEY [2016] NZHC 1903

Citation

[2016] NZHC 1903
Court

High Court

The plaintiff's interlocutory application was dismissed on the basis he had no entitlement to the funds and had not shown lack of alternative finance; consequently the defendants were prima facie entitled to costs. An award of costs was made but the claimed 2.5 days for affidavit preparation was reduced as it represented trial preparation inconsistent with a 2B interlocutory claim, resulting in a reduced costs award of $5,798 plus $110 disbursements.
16 Oct 2015

LEIGH-MACKENZIE v PASCOE & ANOR [2015] NZHC 2547

Citation

[2015] NZHC 2547
Court

High Court

The Court approved the negotiated settlement as appropriate, vested specified household chattels and a 50% interest in 10 Shaw Place in Leigh-Mackenzie under s 33(c) Property (Relationships) Act, and directed trustees under s 64 Trustee Act and executors to transfer specified trust and estate assets to David McLean (or his nominee) to give effect to proprietary estoppel and constructive trust claims and the agreed settlement, having regard to the protection of minor beneficiaries and the avoidance of protracted litigation.