The NZ Trusts Act is changing, what do you need to know?

Posted on 3 November 2020 by Annè Lensink

3 minutes to read

The Trusts Act 2019 is set to come into effect on 30 January 2021. The new Act includes a range of changes to trust laws and trustee obligations. Here is a summary of the key changes, to find out more download our Trustee Obligations Guide below.

Key changes:

Trustees have new mandatory duties, including:

All Trustees will be required to keep copies of specific core documents and have records of Trustee’s decisions
Trustees will be required to advise Beneficiaries of basic Trust information and Beneficiaries will have the right to request Trust information
Trustees will need to consider the best interests of all Trustees when providing requested information.

What do you need to do?

The changes to the Trusts Act will increase compliance costs and the Trustees’ responsibilities. Consider how the changes to the Act may impact you:

Review your Trust, is it still needed? Here is how Villa can help with this!
Review your Beneficiaries and determine if they should remain a Beneficiary of the Trust under the new rules
Consider the effect the changes to transparency requirements will have on Beneficiaries
Ensure you are familiar with the terms of your Trust
Review your tax obligations if you decide to resettle.

Learn about your obligations as a Trustee

To help you understand the Tax Act 2019 and your obligations as a Trustee, review the Villa Trustee Obligations Guide here.

Review your Trust

In preparation for the changes effective on 30 January 2021 Villa recommends reviewing your Trust. Villa’s Trust Review service specifically addresses the Tax Act 2019 changes and analyses if your Trust is still viable and fit for purpose.

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