The common law rule of forfeiture and remedies for the beneficiaries of trading trusts will be reviewed under two new Victorian Law Reform Commission inquiries announced last week.
“These reviews will examine whether the current laws offer sufficient protections for Victorians and whether improvements can be made,” said Attorney-General Robert Clark of the VLRC’s new references.
“While each of these laws apply in limited circumstances, they can have significant consequences for the lives of those affected.”
The rule of forfeiture means a person cannot inherit from the estate of a person they have killed or benefit through survivorship. The VLRC will review the rule and its exceptions.
In relation to trading trusts, which are often used to run family businesses, the VLRC review will include examination of protections for beneficiaries and consider whether the current remedies for oppressive conduct by trustees are sufficient.
The VLRC will provide its report on forfeiture rules by September 2014, and trading trust remedies by February 2015.
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