Major Trust Law changes in 70 years – Are you all prepared? NZ International Tax & Property Advisors

Monday 19 July 2021, 8:25AM
By Media Giant

Significant Trust law changes in the past 70 years came into effect on 30 January 2021.

The changes aim to increase the accessibility of trust law, trustees’ duties and strengthen the ability of beneficiaries to hold trustees accountable.

The main provisions include

  • division of trustee duties into mandatory and standard responsibilities (which may be excluded or modified in the trust deed);
  • provide greater transparency requiring trustees to disclose information to beneficiaries which was not previously required; and
  • obligations to retain core trust records (e.g., trust deed, trust property records and trusted decisions).

There can be various reasons for having a Trust, including asset protection and estate planning. However, over time, the original purpose of the trust may have been served, and it is no longer needed. Given the additional compliance, consider the benefit and cost of maintaining, and forming, a trust to decide whether a trust is still suitable in your circumstances. At NZ International Tax & Property Advisors, we can assist.

Each trustee shall confirm he/she is prepared to take on the additional duties imposed by the Act. Trustees should be prepared to meet their obligations regarding the disclosure of trust information to beneficiaries, including meeting disclosures to beneficiaries and creating a checklist to ensure the disclosure requirements are met.

Trustees must maintain the core documents listed in the Act, so it is essential to check the core trust documents’ status and location.

If you need advice on the law and other trust matters, contact your professional advisers. We can refer you to the best person to advise you. Often, this will be your solicitor.

Here, at NZ International Tax & Property Advisors, we are a one-stop Chartered Accountant firm providing international tax, property tax & consulting, accounting and training services to locals, migrants/expats and businesses.

If you need assistance now or are interested in our services, we are offering free consultation for new clients to discuss their situation and how we can add value and assist. Follow the link to book a time here.

DISCLAIMER No liability is assumed by NZ International Tax & Property Advisors for any losses suffered by any person relying directly or indirectly upon any article within this website. It is recommended that you consult your advisor before acting on this information.