There are many reasons why you might consider establishing a trust:
- to protect assets from a person(s) or future event(s),
- to provide for other family members,
- as part of your estate planning,
- as a vehicle for conducting a business,
- for tax effectiveness.
TRUST LAW IN NEW ZEALAND continues to evolve.
Views are often expressed that compared to some other countries, we in New Zealand appear to have allowed trusts and trustees considerable leeway in terms of the decisions taken by the trustees over trust assets, the tax treatment of trust income, and the quality and completeness (or otherwise) of trust records.
The Trustees Act 1956 and the Income Tax Act 2004 impose obligations on trustees which, in our experience, are not always given the attention they deserve.
When establishing or continuing a trust, it should be ensured that:
- the Trust (Trust Deed) is appropriate for its purpose, and continues to be so over time,
- the Trust Deed itself is fully understood by the settlor and trustees,
- the obligations of the trustees are properly understood and carried out.
Once these fundamentals are in place, a trust becomes a versatile and useful structure within an asset planning tool-kit.
Ross Pauling & Partners Ltd advises on the suitability or otherwise of trust structures for:
- asset protection
- tax planning
Contact us for more information.