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Offshore Cases

J.F. and M.F. -v- Hexagon Investment Limited, New Zealand Trust Corporation and ors (Re the Hexagon Settlement and the Hope Trust) (Unreported) (22 October 2014)

October 2014 Trusts

CAYMAN ISLANDS

COURT OF APPEAL

TRUSTS - INVESTMENT PORTFOLIO - VESTING OF TRUST ASSET - LEGAL OR BENEFICIAL OWNER - RESULTING TRUSTS - IMPACT OF STRUCTURE ON CAPITAL GAINS AND INHERITANCE TAX

The Plaintiffs moved with their children from the UK to New Zealand in 2001. They purchased a home there and brought with them certain assets. However, two substantial investment portfolios remained with Rathbone Brothers Plc and Merrill Lynch in their London offices (respectively, the “Rathbone Portfolio” and the “Merrill Portfolio”).

In 2004, having lived in New Zealand for three years, the Plaintiffs and their children all acquired New Zealand citizenship. The Plaintiffs were then introduced to G.C., a New Zealand lawyer, whom they ultimately instructed to advise them in regards to the management of the family’s investments. G.C. advised the Plaintiffs, in order to avoid certain New Zealand tax liabilities on their worldwide assets, they would need to ‘ring-fence’ those assets offshore. He suggested using an offshore vehicle into which assets neither brought into New Zealand, nor originating in New Zealand, could be placed. Hexagon Investment Limited (“HIL”), a Cayman Islands company, was subsequently formed for this purpose.

 

To continue reading full articles in PDF format:
J.F. and M.F. -v- Hexagon Investment Limited, New Zealand Trust Corporation and ors (Re the Hexagon Settlement and the Hope Trust) (Unreported) (22 October 2014)

 

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EDITOR & HEAD OF LITIGATION BERMUDA

Christian R. Luthi
Tel: +1 441 298 7814
Email: christian.luthi@conyersdill.com


Head of Litigation British virgin islands

Mark J. Forte
Tel: +1 284 852 1113
Email: mark.forte@conyersdill.com


Head of Litigation Cayman Islands

Paul Smith
Tel: +1 345 814 7777
Email: paul.smith@conyersdill.com


HEAD OF THE ASIA DISPUTES & RESTRUCTURING GROUP

Nigel K. Meeson, QC
Tel: +852 2842 9553
Email: nigel.meeson@conyersdill.com

Offshore Cases

J.F. and M.F. -v- Hexagon Investment Limited, New Zealand Trust Corporation and ors (Re the Hexagon Settlement and the Hope Trust) (Unreported) (22 October 2014)

18 October 2014

CAYMAN ISLANDS

COURT OF APPEAL

TRUSTS - INVESTMENT PORTFOLIO - VESTING OF TRUST ASSET - LEGAL OR BENEFICIAL OWNER - RESULTING TRUSTS - IMPACT OF STRUCTURE ON CAPITAL GAINS AND INHERITANCE TAX

The Plaintiffs moved with their children from the UK to New Zealand in 2001. They purchased a home there and brought with them certain assets. However, two substantial investment portfolios remained with Rathbone Brothers Plc and Merrill Lynch in their London offices (respectively, the “Rathbone Portfolio” and the “Merrill Portfolio”).

In 2004, having lived in New Zealand for three years, the Plaintiffs and their children all acquired New Zealand citizenship. The Plaintiffs were then introduced to G.C., a New Zealand lawyer, whom they ultimately instructed to advise them in regards to the management of the family’s investments. G.C. advised the Plaintiffs, in order to avoid certain New Zealand tax liabilities on their worldwide assets, they would need to ‘ring-fence’ those assets offshore. He suggested using an offshore vehicle into which assets neither brought into New Zealand, nor originating in New Zealand, could be placed. Hexagon Investment Limited (“HIL”), a Cayman Islands company, was subsequently formed for this purpose.

 

To continue reading full articles in PDF format:
J.F. and M.F. -v- Hexagon Investment Limited, New Zealand Trust Corporation and ors (Re the Hexagon Settlement and the Hope Trust) (Unreported) (22 October 2014)

 

 

EDITOR & HEAD OF LITIGATION BERMUDA

Christian R. Luthi
Tel.: +1 441 298 7814
Email.: christian.luthi@conyersdill.com


Head of Litigation British virgin islands

Mark J. Forte
Tel.: +1 284 852 1113
Email.: mark.forte@conyersdill.com


Head of Litigation Cayman Islands

Paul Smith
Tel.: +1 345 814 7777
Email.: paul.smith@conyersdill.com


HEAD OF THE ASIA DISPUTES & RESTRUCTURING GROUP

Nigel K. Meeson, Q.C.
Tel.: +852 2842 9553
Email.: nigel.meeson@conyersdill.com