| Thexton v Thexton | |
| Court: | Auckland High Court |
| Date Decided: | 8 November 2000 |
| Citations: | [2001] 1 NZLR 237 |
| Judges: | Salmon J |
| Subsequent Actions: | [2002] 1 NZLR 780 |
Thexton v Thexton is an important case in New Zealand trust law, applying the principle that burden of establishing an intention to create a trust rests on the person alleging it.[1]
The background of the case was a family dispute over the ownership of shares in a family business. The critical question before the court was whether the son held shares in trust for his father.
Justice Salmon ruled, applying the principle of Herdegan v Federal Commissioner of Taxation 1988 84 ALR 271; "The burden of establishing that there was an intention to create a trust is on the person who alleges that a trust was created." Salmon J also held that inferring an intention does not require technical words and may come from a person's acts;