If you’re protecting your family property in a trust, there may be changes you need to make before the new Trusts Act comes into force in January 2021. The changes to the Trusts Act (the first in more than 60 years!) aim to make trust law more efficient and accessible, lower admin costs, simplify core trust principles and essential obligations for trustees, and make it easier to resolve disputes. While… Read more
#1 Extending perpetuity laws At the moment, when you set up a family trust, it has a time limit of 80 years. Then you have to wrap it up and distribute the assets. The new legislation suggests extending it to 125 years, which may involve significant succession planning adjustments. #2 More information access for beneficiaries In its draft form, the Trusts Bill proposes to give most trust beneficiaries the legal… Read more
Whether you’re thinking of becoming a trustee for your own family trust or someone else’s, it’s important to know your obligations under the current law before accepting the role. 8 things to know before becoming a trustee It’s a legal responsibility with a lot of work involved (most often voluntary) and you could end up being liable for losses made by the trust if you don’t do the job properly.… Read more
Planning a summer business trip with a personal holiday tacked on the end? Renting out the bach and unsure what expenses can be claimed? Whatever your situation, we want to make sure you’re getting the expense claim tax break you’re entitled to. Here’s the lowdown on legal costs for trust admin, travel expenses, mixed-use assets and sponsorship. Facing a legal bill for your business or trust? Good news. Generally speaking,… Read more
Family trusts are a popular way to protect and manage your assets, such as the family home, for you and your family, now and in the future. They can have a valuable role to play, but they’re not suitable for everyone. Here are the pros and cons of family trusts to help you decide if it’s worth investigating further. Five good reasons to form a family trust Protect your assets… Read more
Get your paperwork in order: Document your trust actions carefully (if you don’t already) and make sure they’re accurate. Revisit your succession planning: Talk to us to make sure your succession plans still make sense if this legislation goes through. Review your trust: There might be opportunities to improve your tax structure, reduce your risk profile and better your family’s financial situation. Know your CRS obligations: New Zealand uses the… Read more
Up until now, a trustee’s job description has been clear as mud with many families getting into strife unaware of their trustee’s responsibilities. If the new bill comes into place, a trustee’s role will be clearly outlined, and include: Knowing the terms of the trust Acting according to the terms of the trust Acting honestly and in good faith Acting for the benefit of the beneficiaries or the permitted purpose… Read more
Do you have a family trust? Thinking of forming one as a way to future-proof your assets for you and your children? Take note – the Trustee Act is getting a makeover. While there are still a few parliamentary hurdles to jump, now’s the time to get your head around what the new bill will mean for you and your business. In a nutshell Last August, a new Trusts Bill… Read more