The High Court has recently given a salutary reminder to Trustees of their obligations to promptly report and inform beneficiaries for specific trusts of the financial information relating to the Trusts affairs.
In this case the applicants’ children were residual beneficiaries in an estate where there was a life interest to a widow. The independent trustee had been responsible for the investment of the Trusts capital but was not providing information to the beneficiaries.
In the case [Estate M A Dean v G J Moyle & N M Dean 15.11.13 High Court Auckland] the High Court found that the independent trustee was liable for the costs of the application for orders for supply of the information requested when the trustee failed to respond appropriately to the applicants reasonable requests.
The case reinforces trustees obligations to properly inform specific beneficiaries of the Trusts financial affairs.
Trustees should always take good legal advice with regard to their obligations to beneficiaries and if you do require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:
Michael Nidd
03 477 8870 or 09 379 0055
The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.