rusts have been established for many different reasons, including estate planning, creditor protection, to ensure access to rest home subsidies, tax benefits or for protection from relationship property claims.
f you have a family trust set up a number of years ago, it’s good practice to review it to ensure it is still ‘fit for purpose’. Leading on from that is the question that is often asked of us, “Should I bring my trust to an end?”
There comes a time in life where a certain amount of role reversal takes place between children and parents.
All trustees have tasks and duties that have to be performed on a regular basis, even in small family trusts. It’s a burden of responsibility nobody can reasonably be expected to bear for life. This raises questions. When is the right time to walk away? What happens if an ageing trustee is no longer mentally competent? Here are the answers.
If you’ve agreed to act as trustee for a friend, family member or another entity, you’ll be aware that signing up is a relatively easy process. However, retiring as a trustee is not as straightforward. There’s an important process to follow to ensure there are no future problems for you or the trust.
The Trusts Bill introduced on the 1st August this year updates the Trustee Act 1956 and reflects decisions made about trusts in common law. It also provides solutions for issues that have been facing lawyers and trustees for some time.
What many people don’t know is that you can still use your KiwiSaver funds to purchase a home owned by a trust, or partly owned by a trust.
A legacy or a gift in a will can significantly change your life, personally and financially. When a relative or friend does this, they want to show you kindness, but they usually also want the gift to benefit you personally, not other people like creditors, the Official Assignee or a de facto partner.
Last December, the draft Trusts Bill was released for public consultation. Resulting from recommendations in a Law Commission report, the new Trusts Act will replace the Trustee Act 1956 if passed and become the primary source of trust law in New Zealand. Here is an outline of the key proposals and changes
The two most common farm-owning entities are either a company or a trust. Often, a farming operation is carried out with a mix of trust ownership (typically owning the land) and a company (owning the rest). Both structures have their pros and cons; in this article we compare these two ownership models.