Have I made one?
The law around trusts is ever-changing particularly with relationship property and matrimonial issues. The courts continue to chip away at the trust as an appropriate vehicle to protect assets against a relationship breakup.
The Clayton case
One area of this changing environment that will be of interest to the rural community is a consequence of some judicial reasoning in the Clayton v Clayton case. There will be particular interest in the comments made in relation to ‘nuptial settlements’ and s182 of the Family Proceedings Act 1980.
Continue reading “‘Nuptial Settlements’”
Relationship property for companies
Shareholders’ agreements are comparable to relationship property agreements (colloquially known as ‘pre-nuptial agreements’), as the objective of each is to establish rules for relationship property – whether it’s in your business or your personal life.
Not all relationships were built to last forever, and even the most stable relationship amongst shareholders may waver. Issues may also arise unexpectedly, such as the death of a shareholder or the need for a shareholder to sell their shares. Planning in advance for these events can pre-empt a dispute, and save some costs for the respective parties.
Unlike a company constitution, a share-holders’ agreement is not registered with the Companies Office and therefore it has a greater degree of confidentiality. Company constitutions generally contain the nuts and bolts provisions to operate the company that are not provided for in the Companies Act 1993.
Continue reading “Shareholders’ Agreements”
Keep it protected
For many people a gift by Will (also known as a legacy) from a relative or friend can be very significant – both personally and financially. The relative or friend wants to show you kindness but also usually wants the gift to be of real benefit to you personally. The gift is not intended to benefit other parties such as creditors, the Official Assignee or a de facto partner, however, unless it’s protected, that can be the unintended outcome.
Relationship property claims
If you are a beneficiary under a Will and you’re married, in a civil union or de facto relationship, the gift (under the Will) is separate property (as opposed to relationship property). The difference is important because if your marriage or relationship breaks down or you die, your spouse or partner cannot claim half of the gift (or its proceeds) because it’s separate property which is not subject to the equal sharing regime under the Property (Relationships) Act 1976.
Continue reading “Looking After Your Inheritance”
If you are in a de facto relationship, there could be significant financial implications for you if you separate, or if your partner (or you) dies
The principal piece of legislation which deals with the division of property belonging to couples or married couples is the Property (Relationships) Act 1976 (the PRA). Substantial reforms in 2001 extended the scope of the PRA to cover de facto relationships. But what exactly constitutes a de facto relationship in the eyes of the law?
Continue reading “Are We in a De Facto Relationship?”
With the growth of multiple relationships and blended families many couples are having to consider ways to ringfence assets and protect inheritances. One option is to establish parallel trusts – so you each have your own trust for your share of the assets.
Continue reading “Parallel Trusts: Could be the best option for you”
When relationships break down, numerous issues arise around the division of property. One spouse or partner may be left significantly worse off than the other, assets are often ‘protected’ by trust structures and it can be unclear what property makes up the ‘pool’ to be divided. Two recent cases provide insight into how the courts are approaching relationship property matters.
The Property (Relationships) Act 1976 provides a presumption of equal sharing of relationship property at the end of a marriage or de facto relationship if it has lasted at least three years. It also allows the court, however, to adjust the division of relationship property in one party’s favour where the court is satisfied that the income and living standards of one party is likely to be significantly higher than the other party, because of the division of functions within the relationship. In August 2013, the Family Court made its most significant adjustment to date, awarding a Continue reading “Relationship Property Developments”
We publish the latest edition of Trust eSpeaking here.
In this edition:
- Let’s give it all way – It’s not that straightforward
With the abolition of gift duty from 1 October 2011 the first thought for most people who have a family trust would be “Let’s give it all away”
- Rest home care – Don’t expect government hand-outs
After gift duty comes to an end from 1 October, one thing will still be clear: you can’t give everything away to a trust and then expect to rely on state assistance because you don’t own any assets…
- Trustee Liability – As vendor under an Agreement for Sale & Purchase Trustees are the legal owners of trust property and are personally liable for warranties given under an Agreement for Sale & Purchase. Trustees should be very careful about giving warranties
- Trusts and tax – The Supreme Court has spoken Using a trust – or any other structure such as a company – to reduce your income is
not straightforward. If you push the boundaries too hard you may end up having to pay a lot more. The latest Supreme Court decision provides a useful warning
Today we publish the Autumn issue of Trust eSpeaking; we hope you enjoy reading it. If you would like to talk further about any issue about trusts, please don’t hesitate to contact us.
In this March edition, we have articles on:
- Gift Duty Abolition: from 1 October 2011
- Rush to Trust – or Maybe Not? Careful on relationship property issues
- What Might Happen with Future Trusts Legislation?