Mr Sam creates a family trust “Sam Family Trust” on 1 February 2007 and has his children (Jason and jackie) as beneficiaries of the trust. He appoints his brother and sister-in-law as trustees, Mr Gorge Smith and Mrs Helen Smith.
The trust document mentions the following terms:
The purpose of this trust is to create an income for its beneficiaries, so named:
Jason, born 26 August 1995.
Jackie, born 9 April 1997.
Trustees must abide by any statutory duties and may exercise general powers where necessary.
The trustees have the power to enter into any sale and purchase of real estate.
The trustees have the power to invest trust funds.
The trust acknowledges the rights of the trustees under statute.
After 2 years of the Sam Family Trust being in existence, Mr Gorge(one of the trustees) decides to purchase a property in Oregan, through the trust, from Mr Collin shaw. Originally a wealthy overseas investor, Mr Smith gained citizenship in States a few years ago and has acquired a number of different properties, including the one inOregan.
Mr Collin Shaw engaged a real estate agent to sell the property. The agent approached Mr Gorge on October 2 2009, who advised the purchaser would be Sam Family Trust.
Mr Gorge smith signed an agreement for the purchase on 3 October 2009, however Mrs Helen Smith did not sign as she was not aware the purchase was taking place.
The agent suspected there was more than one trustee but did not raise this issue as they thought Mr Gorge power to act alone was present in the trust document.
When the agreement was sent to the respective solicitors on 5 October 2009, the issue of Mr Gorge signature alone was not raised. Close to the sale being finalised (on 15 October 2009), Mrs Helen Smith refuses to sign the transfer (1 day prior to sale finalising) and the deal does not go ahead.
Mr Shaw is very upset and goes to his lawyer seeking what remedy he is able to get - he wants the deal to be finalised with the Sam Family Trust. Mr Gorge solicitor has been notified of this proceeding and must prepare a defence for Mr Gorge and the Sam Family Trust.





