Discretionary trusts and divorce

Sole Director, Sole Beneficiary, Appointor etc = You. Alter-ego ??
Good legal advice may have suggested alternative structuring for the trust.
Recent court decision even found that (some) guardian provisions can be a mask and of limited effect in some instances.

Pre-nup is not a Australian legal tool. Binding Financial Agreements (BFAs) are of limited effect. Can be attacked especially where its a case of "sign this !!"

 

Which case Paul?

 

OK found it....

Issue was WA SC. Blenkinsop v Blenkinsop Nominees Pty Ltd [2016] WASC 61
Earlier orders were given to change trustee of two trusts to appoint a independent trustee. Issue was if guardian powers which limited actions by trustee could be severed by Court. Parties argue relationships had broken down to render related guardians and trustee in position where trustee could no longer act. Considered issue of unanimous decision making was now impractical. However removal of guardians would disregard intention of deed. Also guardians had acted with self interest in the past so.... Which prevails ?

Issue is that many people seek to include guardian roles (as distinct from that of an actual appointor) in a trust to safeguard or protect trust (hopefully) by rendering a form of supervision over some trustee acts.... and that a arms length guardian may (or may not) assist to differentiate from arguements of alter ego's on marital breakdown etc. (Think of best mate supervising trustee controlled by me to frustrate my wife) In this case the Court did not seek to interfere with the guardians powers but did order the trustee changed.

IMO Decision doesnt set a problem in stone or address a absolute safeguard but confirms a range of ongoing concerns that a guardian may not be a absolute safeguard.

 

It wasn't the Condon one was it?