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.
When we started with GRA we werent certain of the benefits they could provide us. However they quickly unravelled our complex situations with multiple companies and structured our businesses so that we received maximum personal protection and minimised our tax liabilities. They have always been accurate on time thorough and available to answer our questions. Now six years after first moving to the team at GRA they have skilfully guided us to a future that looks amazing. It is with confidence we make decisions knowing our interests are protected by an outstanding group of modern forward thinking professionals. Their guidance has been invaluable and we can thoroughly recommend GRA - Dougall Love and Janice Knowles - June 2017
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