Facts of Gina Rinehart’s case
Mrs. Gina Rinehart has been the trustee of Hope Margaret Hancock Trust. The value of the Hancock trust is worth $4 billion. Gina Rinehart is the mother of John Hancock and Bianca Rinehart who are against her in this civil action while Ginia Rinehart, who is her youngest daughter has been supporting her mother, Gina Rinehart. Lately, Gina Rinehart wanted to vacate her position as a trustee and instead decided to elect an heir to hold her position. Earlier in 1988, the trust had been established by Lang Hancock making Gina as the trustee and her children as the beneficiaries. They would receive the amount of money in September 2011 when Ginia, the youngest daughter would attain 25 (ABC News, 2014). But before this attainment, Gina gave a written notice to her children stating how the trust would be divided and also apprised them that after such division they would become insolvents due to the capital raise taxes. On seeking for proof, Gina abstained to provide them. This led to an action and Gina was accused of altering the trust in 2006 in order to prohibit them from receiving their shares until 2068, however she disagreed to this accusation.
Provisions of law involved
The issue of alteration of a trustee is common. Since the trustee is entitled to several pecuniary, administrative and other functions it becomes essential that the trust is transferred to the proper hands (Bankes, 2016).A beneficiary possesses equitable regard while a trust possesses legal regard. The trust laws state that when a trustee performs on behalf of a beneficiary, his right would affect his duty and there would be a violation of the law unless the beneficiaries have given permission expressly. The accusation framed against Gina would be justified had she acted erroneously without informing her beneficiaries.
ABC News. (2014). Gina Rinehart family trust feud explained. Retrieved from https://mobile.abc.net.au/news/2013-10-02/rinehart-feud/4994280
Bankes, N., & On, C. C. (2016).The Power of a Trustee in Bankruptcy to Disclaim Unproductive Oil and Gas Properties and the Implications for the AER’s Liability Management Program.Power, ABQB 278