Using other monies she received from the settlement, Missy purchases $100,000 worth of shares in Entertainment Co
Question:
Using other monies she received from the settlement, Missy purchases $100,000 worth of shares in Entertainment Co Pty Ltd, a blue-chip ASX listed company. Missy also loans $20,000 to her friend Annie. The loan document states that Annie is to pay Missy interest on the loan at a rate of 10% per annum. Missy's son, Fuzz, is about to start at university. Missy and Fuzz both live in NSW. Missy wants to help Fuzz with any financial stresses that may arise from studying at university. So, Missy writes a letter to Fuzz which she gives him on his birthday. The letter reads:
"Dear Fuzzy, I am ever so delighted that you have secured your future by going to university! You make your mummy so proud. I want to support you - both emotionally and financially. For your birthday and to support you at university, I give you: 1) All dividends from my shares in Entertainment Co; 2) All the money that Annie owes me - but I want to keep the interest! Lots of love, Mummy"
Advise Fuzz if each purported assignment is valid at law and / or equity?
South Western Federal Taxation 2017 Comprehensive
ISBN: 9781305874169
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young