Trusts Act 2019

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On 30 January 2021, the Trusts Act 2019 will come into force, bringing with it a number of changes.

The main objectives of the Act are to set out core trust principles, ensure efficient trust administration, provide mechanisms to resolve trust related disputes and making the law of trusts more accessible.

Trusts are common place in New Zealand and provide a great instrument for managing risks, asset protection and wealth succession. In practice, many trusts exist without the IRD, the government and the courts having any knowledge or involvement with them. Settlors have been able to manage and control them in a liberal manner, without any state supervision.

The effect of this legislation revises this relatively cavalier approach, impacting how your trust is managed, the obligations imposed on settlors and trustees, and the duration of a trust, just to name a few.

This is a good time to review your trust deed to ensure it still meets your needs going forward, and is legislatively and administratively compliant.