Responsibilities and requirements

The new Act has brought about new responsibilities and disclosure requirements. There are also other pieces of legislation that now require trustees to file IRD documents and financial returns, and within certain timeframes. If this applies to your trust, it's really important that you manage it properly. 

New disclosure requirements

The new disclosure requirements apply to all trusts with assessable income over $200. There is a silver lining though, if your trust is considered to be 'passive' - a passive trust is one that earns an income of $200 or less in a financial year - it does not have to meet the new disclosure requirements provided, a non-active declaration is made for the trust. In that case, you will need to make sure your accountant fills in a non-active declaration for the trust and files it with the IRD. 

Include a Memorandum of Wishes

You may want to consider tying a Memorandum of Wishes together with your trust. This is a bit like having a will for your trust. It sets out how the Settlors want the trust to be run during their lifetime and what they want to happen with the trust when they are no longer around.  

Trust Management Services

We offer a range of trust management services. The fees and costs will depend on the type of trust you have and the assets in it. For example:

  • Trust owns a residential home only (and where the beneficiaries live).
  • Trust owns a residential home where the beneficiaries live as well as a second property like a rental or bach.
  • Trust owns an investment portfolio, shares in a private company, a residential home where beneficiaries live, and a second property.

Resources

  • Trustee management self assessment tool

  • Trustees Guide

Articles and Events