- The sanctity of the discretionary trust as a vehicle for the protection of family wealth is rarely questioned. Yet Australian courts have been prepared to make, at least on an interim basis, orders in proceedings freezing trust assets where its controller becomes insolvent. While it has been some time since the Richstar case in 2006 more recently the Federal Court of Australia in Rafferty v Time 2000 West Pty Ltd (No.9) was prepared to make a freezing order over the exercise of the power to change a trustee of a discretionary trust. During the same period the 2006 Bankruptcy Act amendments, intended to provide greater access for creditors to family wealth generated by the bankrupt, remain largely untested. This seminar reviewed the current state of play as to the means by which insolvency practitioners continue to seek to access wealth contained within trust structures and consider how effective they in fact are.
Asset protection and trusts in insolvency
Author(s):
Michael Lhuede
Materials from this
session:
Details
- Published On:26 Jul 2012
- Took place at:Leonda by the Yarra, Melbourne
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Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
This material is copyright. Apart from any fair dealing for the purpose of private study., research, critisism or review, as permitted under teh copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opininons are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
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2012
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