30 July 2019 was an important milestone in the land of trusts. That was the date the Trust Act 2019 became law in New Zealand.
One of the objectives of this new law is to provide for greater transparency and accountability by trustees to beneficiaries. This objective is underpinned by trustee duties now being codified.
Whilst it may seem an obvious point to make, it should nevertheless be made... in order for a beneficiary to hold a trustee accountable, they must first know they are indeed a trust beneficiary. Prior to this new enactment, many people would be unaware they were beneficiaries of a trust. This is because trustees did not have a positive legal duty to inform a person of their position. The new Act has reversed this position entirely, however, mandating trustees have positive duties of disclosure to honour.
Pursuant to the newly introduced statute, trustees must now inform people if they are a beneficiary of a trust. This includes fixed and discretionary beneficiaries. Furthermore, trustees must provide specific information to beneficiaries. Whilst trustees have a legal right to withhold information, this will prevail only in very exceptional circumstances.As always, if you need assistance with your trust affairs, be sure to contact us on +64 9 522 7955, [email protected] or via our website.
I thoroughly enjoyed the Property Leaders event on Sunday, and I really appreciated all the effort that GRA went to for it to happen! I'm really happy with our decision to have moved our business over to GRA - and I was excited to see some of the new services that are being offered to investors, so well done! - Kritzo Venter, May 2019
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