(Solved) : Case Study Background Part 1985 Tim Neil Lacey Neil Neil S Purchased Around 35 Hectares La Q36736946 . . . .

Case Study

Background – Part A

In 1985, Tim Neil and Lacey Neil (“the Neil’s”) purchased around3.5 hectares of land

near Westgate (“the Land”) for dairy and poultry farming. Thepurchase price was

$750,000, which was funded by way of a bank loan of $500,000 andcash deposit of

$250,000. In 1986, a house was built at the elevated end of theblock and The Neil’s

resided in this house. The cost of the construction was$200,000. Subsequent to this

purchase and some 12 years later, The Neil’s decided toincorporate two discretionary

trusts and transferred the Land to the trusts. They were thesettlors and trustees of the

trusts, which was called SN Trust