Thursday, June 30, 2011

New Zealand Law Reform Commission Fourth Issues Paper on Law of Trusts

The Law Commission of New Zealand has published its fourth issues paper in its review of the law of trusts:

"Part one of the paper examines the duties that a trustee owes to beneficiaries of a trust. It gives particular attention to the duty to inform beneficiaries about matters relating to the trust. Part one also looks at which of the duties should be considered part of the irreducible core of the trust, that is, which duties should be incapable of being excluded by a trust deed. The Commission considers whether there should be limits on what exemption clauses, which exclude the liability of trustees for failing to carry out the duties, can do."

"Part two of the paper discusses the appointment, retirement and removal of trustees. It also addresses the powers given to a trustee. These issues are examined to identify whether the law is effective, or whether it should be modernised and improved."

Earlier Library Boy posts on the topic include:
  • New Zealand Law Reform Commission Introductory Issues Paper on Law of Trusts (November 17, 2010): "The first issues paper is primarily a background paper. It traces the development of the trust from its origins in England through to the present day uses of the trust both in New Zealand and internationally."
  • Recent Reports by the Law Commission of New Zealand (December 30, 2010): "The second issues paper will cover issues with the use of trusts (especially family trusts) in New Zealand. This paper will look at the purposes for which family trusts are established, including reducing tax obligations, protection of assets from creditors and relationship property claims, and meeting eligibility thresholds for government assistance. The paper examines different legislative and judicial responses to the use of trusts to 'look through' or disregard a trust where a trust has been used to frustrate the underlying policies of particular statutes. The Commission poses options for how the law could address concerns about the use of trusts. The paper seeks comment from as broad an audience as possible on issues such as why trusts are so common in New Zealand, whether limits should be placed on the uses to which trusts are put, whether high levels of settlor control is an issue for concern, how effective existing legislative mechanisms are at addressing the impacts of trusts and whether the law on sham trusts is satisfactory."
  • New Zealand Law Reform Commission Third Issues Paper on Law of Trusts (May 4, 2011): "Part one of the paper examines the rules that limit the duration of a trust: the common law rule against perpetuities and the Perpetuities Act 1964. The Commission explores the underlying rationale for the rule against perpetuities and asks whether the rule continues to meet a relevant policy need or whether either the mechanism for achieving this policy or the policy basis itself should change. The paper canvasses different options, including retaining the statutory perpetuity rule, adjusting or extending the statutory rule and abolishing the rule altogether, as has been done in a number of overseas jurisdictions. Part two of the paper looks at the rules that allow trusts to be altered. "

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posted by Michel-Adrien at 7:43 pm

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