Greenlion Expands on the New Trusts Act

Legislature has recently added the Trusts Act 2019 to its books, the first major trust law reform undertaken in the past 70 years, with the objective of making law more comprehensible, accessible and transparent to all those involved in Trusts. Trustees should benefit from the Act , as their duties are expressly stated in black and white for all to see and follow. The other side of this coin however is Trustees are likely to find their role more onerous. With the Act making it much easier for Beneficiaries to hold Trustees to account, it would be a brave Trustee indeed who accedes to the directions of one party only. 

 Since the new Act came on the books, Greenlion has been ‘leading the roar’ by providing educational seminars and ensuring Trustee services are provided to their clients. In particular, Greenlion has been busy ensuring it carries out its role as an independent Trustee in a company. This means a company is incorporated to act as a Trustee, with the Greenlion Partner appointed to hold director and shareholder roles. In effect, a bespoke company, for a specific client is created.  

Benefits to a client using this model of trusteeship are numerous… for example if their Greenlion Partner is not available to sign documents, another Greenlion Partner can do so on their behalf, ensuring a client’s transaction is never held up. Greenlion has also led the charge by invoking new processes, now having its clients’ financial statements and transactions reviewed, ensuring appropriate Trustee Resolutions and other documents are put in place, thus minimising and negating allegations of sham Trust.  

Finally, Greenlion are safeguarding clients Trust documents, holding them electronically, and in doing so, satisfying the duty the new Act bestows upon Trustees in respect of document keeping. 

Given the new level of oversight, administration and management Trusts now require, clients may well wonder if having a Trust is still the right thing to do. This is a legitimate question, so if  you’re a Trustee and have queries but aren’t so keen to read the 184 sections contained in the Act to find your answers, or if you need assistance with your Trust, you can contact Greenlion, and for more information on accounting services Auckland and business consultants please go to https://www.greenlion.co.nz .