Trusts Act 2019 – Your Changing Obligations

The impacts of the new Trusts Act 2019 are significant for your obligations and rights as a Settlor, Trustee or even as a Beneficiary. There are a number of actions you should be taking now in order to meet the obligations of the Act as from January 2021.

1.   Collate Trust Documentation

  •  All Trustees must have copy of Trust Deed and changes to Trustees
  • At least one Trustee must have a copy of all core Trust documents which is available to all other Trustees

2.    Review Core Document

The Trust Documentation needs to be reviewed.

  • Is the Trust still relevant?
  • Is the Beneficiary definition too wide?
  • Are there out of date clauses, for example:

Income accumulation clauses incorrect
Beneficiary appointment clauses
Narrow variation powers
Limited rights to resettlement
Limited powers to remove Trustees

  • Do the default Trustee duties need to be modified?

3.     Information Disclosure

  • All beneficiaries are entitled to receive basic Trust information
  • Other Trust information to be made available upon beneficiary request unless Trustees resolve not to
  • Settlors and Trustees need to meet to discuss disclosure

Please contact us now to discuss your plan to meet these obligations.

Lifelaw Team

Stephen JefferyMonica RyanGerard ThwaitesChris Anderson,  Petrea ParkhillCassidy WallRosemary AitkenVanessa Boyd, Sherie AdamsLisa PennAnt LilleyJulie Hutton

12 August 2020

Contact

Stephen Jeffery - Christchurch private client lawyer and part of the Lane Neave Lifelaw teamStephen Jeffery
Partner

t +64 3 353 8050
m +64 21 669 925
(click to email)

Monica Ryan - Christchurch private client lawyer and part of the Lane Neave Lifelaw teamMonica Ryan
Partner

t +64 3 372 6335
m +64 21 665 286
(click to email)

Gerard Thwaites - Christchurch private client lawyer and part of the Lane Neave Lifelaw teamGerard Thwaites
Partner

t +64 3 353 8025
m +64 29 233 3447
(click to email)

Chris Anderson - Christchurch private client lawyer and part of the Lane Neave Lifelaw teamChris Anderson
Partner

t +64 3 371 7690
m +64 21 65 6672
(click to email)