Thexton v Thexton

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.
Background.
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.
Judgment.
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 persons acts;