09 December 2022

Family Trust: Whale v. Silich

Seven years after they separated, Gary Whale is challenging decisions about family trust farming assets made by his former wife Tanya Silich asking the High Court to remove her as trustee.  Both were removed as trustees and independent trustees appointed with power to investigate trust operations over the previous seven years.   

The High Court was told the two separated in November 2015 after 26 years marriage.  Gary is a builder by trade.  He left wife Tanya in possession of their Waipu dairy farm owned by a family trust.  A farm advisor was employed to act as a go-between assisting with their joint management of the farm.  Evidence was given that over time the advisor either stopped passing on Mr Whale’s views or Ms Silich chose to ignore them.

Mr Whale alleges his former wife has subsequently operated their family trust for her own benefit, failing to account for trust profits and using trust money for her own benefit.  The two have not met in person since they separated in 2015.  Since that time, Ms Silich has sold the Waipu property and transferred operations to a dairy farm near Dargaville.

At the request of Mr Whale, Justice Brewer ordered her removal as trustee as being in the best interests of trust beneficiaries. Mr Whale was also removed as a trustee; the level of estrangement between the two was such that it would be difficult for Mr Whale to be even-handed between all trust beneficiaries, Justice Brewer said.  Named as beneficiaries are Mr Whale, Ms Silich and their two adult sons.  Two retired chartered accountants were appointed as replacement trustees.

Ms Silich did not appear in court to contest her removal as trustee.

Whale v. Silich – High Court (9.12.22)

23.010