Caveat on Shares

[flanking8]

I have a husband who, over our many years together, purchased shares on behalf of our family trust. We have now seperated, and I am concerned that he will cause those shares to 'disappear'. Can I place a caveat over them or the trust fund, of which I am a beneficiary?

 

[Ausprop]

see a lawyer. you may be able to get the assets frozen?

 

[Ausprop]

you'll collectively blow $100-$200k on this biffo in legal fees by the way

 

[Perp]

If it's a discretionary trust and he's the trustee, I'm not sure how you could show that you have any entitlement to any of the trust's assets.

But perhaps family law overrides basic principles of structures.

 

[Terryw]

Beneficiaries of discretionary trusts are entitled to lodge caveats on property owned by trustees. it could also be done under the Family Law Act.

But I am not sure on the practical aspects how you would do it with shares.

 

[Player]

I was under the impression that family law "looks through structures" such as trusts and SMSF.........unless that trust was a blood line trust from a previous inheritance and/or marriage, although you mention these share holdings were purchased on "behalf of OUR family trust" so that may not apply.

Are you merely a beneficiary (named at that) or are you also a trustee or director of the trustee company if such exists?Are you both Appointors or is it only your ex-husband?

Seriously get some legal and accounting advice.

 

[Ausprop]

well the first question is, where did the money to buy the shares come from? if lent in by the couple then there is your first joint asset

 

[Perp]

Beneficiaries of discretionary trusts are entitled to lodge caveats on property owned by trustees.

Wow! Even if they have no other position (ie trustee, debtor, appointor etc)? I thought you were encouraged to make the potential beneficiary pool as wide as possible - ie out to cousins, aunts, uncles, and all related businesses etc - for potential tax benefits, but if anybody within that substantial pool has a legal claim on the Trust's property, it seems to me that a DT offers no asset protection whatsoever.

well the first question is, where did the money to buy the shares come from? if lent in by the couple then there is your first joint asset

I'd agree that a loan to the Trust would be a potential joint asset, but I don't see how somebody who's a beneficiary only has a claim on the Trust's assets; I thought that was the whole idea of the "discretionary" part.

 

[Terryw]

Hi Perp

Yes, just being a beneficiary of a trust means you have an interest in the trust assets, an equitable interest and on this basis a caveat could be lodged. The authority for this is Paul A Davies (Australia) P/L (in liq.) v Davies [1983] 1 NSWLR 440

I wouldn't say any beneficiary has a claim on trust property (, but they do have the right to be considered, at least, by the trustee when they make the decision on who to distribute to.

 

[willair]

I have a husband who, over our many years together, purchased shares on behalf of our family trust. We have now seperated, and I am concerned that he will cause those shares to 'disappear'. Can I place a caveat over them or the trust fund, of which I am a beneficiary?

It may depend on how long you have been seperated,but as you would already know once those units are sold it will be a very big problem if they leave this country and leave all the "ATO" problems for someone else to fix up,rather then walk through a minefield with no one giving you the correct path just make a appointment a see a Lawyer,i know someone who went down this road and it did not end up the way she wanted.imho.willair..