NEW TRUST LAW MEANS SIGNIFICANT CHANGES FOR TRUSTEES
Protect your trust from the storms of life, by reviewing your trust deed.
After waiting what seems like years the new Trust Act has finally been passed into law, receiving Royal Assent on 31 July 2019 – cleverly entitled the Trusts Act 2019.
The majority of the Act doesn’t take effect for 18 months from Royal Assent, but finally we are able to look at the future of trusts in New Zealand with some confidence. This transition period will allow trustees to review their existing trusts before the Act finally becomes effective.
The new Act replaces both the Trustees Act 1956 and the Perpetuities Act 1964 and is intended to make trust law more accessible, clarify and simplify core trust principles and essential obligations for trustees. Now for the first time trustees will be able to look to one place for their obligations, which they must comply with and obligations and duties, which they may be excluded from PROVIDED the trust deed permits this. Hence, there is a period for trustees and their advisors to review trust deeds for any variations that may be necessary (assuming the existing trust deed permits those changes).
The Mandatory Duties must be complied with by the Trustee and cannot be modified or excluded by the trust deed. These are:
Whereas the Default Duties are capable of being amended or removed in the deed:
Here are some other changes in the new Trust Act:
At Shellock Consulting we have the resources to assist trustees in their obligations in these and many other aspects of taxation law.
If you need a hand complying with your trustee obligations, then contact us for assistance.
Posted: Thursday 29 August 2019