Trust Property Transfer Voidable for Defrauding Creditors
📌 In brief
The court ruled that a transfer of trust property to a new trustee was illegal because it was made with the intention to defraud creditors. This decision was based on Section 37A of the Conveyancing Act 1919 (NSW), which makes such transfers voidable.
📚 Full judgment
The summary, holding and questions above are VadeLab’s own material. The official decision itself is published by the court, and we do not reproduce it on this page.
📄 Read the full judgment⚖️ View on the official court website ↗
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The transfer of the property was intended to hinder or delay the creditor's ability to collect the judgment debt.
- The creditor was prejudiced because the transfer prevented them from executing the writ and obtaining an order for the sale of the property.
- The trustee had a duty to protect its right to indemnity from the trust assets before transferring the property.
❌ Tends to be rejected
- The trustee argued that they were not validly appointed and therefore were not entitled to indemnity, but the court rejected this argument.
- The trustee claimed that they were not prejudiced since they still had the right to be indemnified out of trust assets, but the court disagreed.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What was the dispute about?
The dispute was about whether a transfer of trust property to a new trustee was valid or voidable due to the intent to defraud creditors.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, as the transfer was declared voidable.
What does this mean for someone in a similar situation?
For someone in a similar situation, a transfer of trust property made with the intent to defraud creditors may be declared voidable under s 37A of the Conveyancing Act 1919 (NSW).
What evidence or documents mattered?
The judgment does not specify the exact evidence or documents that mattered.