Description

The right of the trustee to an indemnity for costs and expenses incurred in the course of office is “recognised as an incident of trusteeship.”

McCallum Jnr v McCallum

However, as confirmed by the Supreme Court in Lambie Trustee Limited v Addleman:
“… the right to indemnity applies to costs “properly incurred.” It is not disputed that “careless and unreasonable conduct in the conduct of litigation” may deprive a trustee of the indemnity. Further, as the Court of Appeal noted in McCallum Jnr, “[a] trustee partisan in his [or her] own interests or the interests of only some beneficiaries likewise may be deprived of indemnity”.

HIGHLIGHTS
This webinar, which includes a comprehensive paper and concludes with a question and answer section, will consider the outcome of recent cases to demonstrate how trustee liability arises and the practical steps that can be taken to manage the risks of trusteeship.
Topics covered will include:

• Sources of risk
• Indemnity myths
• Liability and exemption clauses in trust deeds
• Practical considerations regarding the use of corporate trustees following the Court of Appeal decision in Legler v Formannoij and the Supreme Court decision in Lambie Trustee Limited v Addleman
• Blessing orders
• Insolvent trusts – to what extent does the Privy Council decision in the Equity Trust case apply to New Zealand
• Managing the costs of litigation
• Case law up-date

WHY ATTEND
Although it is common for a deed of trust to limit a trustee’s liability to the assets of the trust, many circumstances can arise where a trustee is personally liable for losses. Accordingly, it is essential that trustees (and their advisers) understand and manage the risks inherent in the appointment as a trustee.

ORIGINAL BROADCAST DATE

5 April 2023

LEARNING OUTCOMES

Attendees will learn:

• How to practically assess the risks of trusteeship
• The extent to which trustees can limit liability and be indemnified
• The parameters of properly incurred expenses in a trust context, and
• How loss is shared following a trust’s insolvency 

SUITED TO

This webinar is targeted at practitioners at all levels but will be of particular benefit to practitioners who advise trustees or who are trustees or directors of trustee companies.

PRESENTER

Vicki Ammundsen, Director, Vicki Ammundsen Trust Law Limited.