By estimation there are around 400,000 trusts in New Zealand. Because trusts are such an integral part of our society, an overhaul of the law was necessary. The new Trusts Act 2019 is coming into effect from 30 January 2021.
Overview of key changes
- A description of the key features of a trust to help people understand their rights and obligations
- Mandatory and default trustee duties to help trustees understand their obligations
- Requirements for managing trust information and disclosing it to beneficiaries
- Flexible trustee powers, allowing trustees to manage and invest trust property in the most appropriate way
- Provisions to support cost-effective establishment and administration of trusts
- Options for removing and appointing trustees without having to go to court
- The maximum duration period of a trust will extend from 80 years to 125 years
We are reviewing trusts with our clients to discuss how the law changes will affect them.
If you are a trustee of a trust, we recommend you look into how the changes in the legislation will affect you.