Changes to trust legislation
New legislation has just been passed that will change trust law in New Zealand. The intention was to clarify and simply trust principles and trustees' obligations.
The changes mean that:
information will be more readily available to beneficiaries;
trustees' duties will increase (more compliance requirements and more transparency);
the possible trust period will increase (previously the maximum time was 80 years - now it is 125 years).
This is the first major change in 60 years. Previous legislation was in the form of the Trustee Act 1956 and the Perpetuities Act 1964. The new legislation is the Trusts Act 2019 and takes effect from 31 January 2021 (although there are certain amendments regarding financial services, that are already in force).
We recommend reviewing your trust deed before the new legislation takes effect.
Let us know if we can help you with this.