Creating Entitlements in Discretionary Trusts
Sladen Snippet - Strategies for Estate Planning and Asset Protection Following New High Court Decision
n Fischer & Ors v Nemeske Pty Ltd & Ors ([2016] HCA 11; [2014] NSWSC 203), the High Court yesterday upheld the decisions of the Supreme Court of New South Wales and Court of Appeal.
The High Court’s decision confirmed that the resolution of a trustee of a discretionary trust to distribute an amount equal to the value of shares owned by the trustee to a beneficiary (Nemes) created a debt payable upon demand enforceable against the trustee by Nemes’ executor upon Nemes’ death.
Asset Protection Strategies
On 16 February, 2016 Sladen Legal delivered a presentation on Asset Protection Strategies.
Topics presented were:
- Protecting distributions, gifts and loans including the use of gift and loan arrangements – by Rob Jeremiah;
- Super contributions and asset protection – including the bankruptcy clawback rules – by Phil Broderick;
- Secured intra-family group loans and the Family Court – by Daniel Smedley.
Handouts from the presentation are now available to download.
Further information on SMSFs and Asset Protection are available from a presentation delivered by Phil Broderick, on SMSFs and Asset Protection, as part of the Television Education Network’s 3rd Annual Asset Protection Conference, on 15 October 2015.
Lessons from Gina Rinehart's Family Dispute
The very public dispute between mining magnate Gina Rinehart and her children over access to family wealth held in a Family Trust came to a head this year, when the NSW Supreme Court appointed one of Gina’s 4 children (Bianca) as the new trustee of the Family Trust in place of Gina.
The Family Trust, in effect, owned a 24% shareholding in Hancock Prospecting Pty Ltd (HPPL) and HHPL owned all the shares in the company which has an interest in an iron ore mine at Hope Downs. Bianca and her brother, John, had issued court proceedings against their mother to remove her as trustee so they could access their share of the Trust’s assets.