Trusts are a very popular way to hold assets in New Zealand. There are many benefits to having a trust, including providing certainty in estate planning and protecting family assets from unforeseen claims by third parties.
As well as assisting with the re-settlement or variation of trusts in the event of separation, we can also assist with ongoing trust administration, and winding up trusts. If you have any trust queries, please contact Jill at jill dewarlaw. Jill will then direct your inquiry to the appropriate lawyer. Trusts need to be actively managed if they are to fulfil the purpose for which they were set up. We can assist you with your ongoing trust administration by sending you regular reminders and carrying out annual trust reviews.
We can draft trust resolutions to record the fact that the trustees have been actively monitoring and managing the trust assets.
Trusts have in the past been established in order to minimise tax liability, or to preserve the ability to obtain a rest home subsidy. RSS Feed. Trusts must now have their own IRD numbers and tax-avoidance measures have been introduced to target those regularly turning over property.
Since then, if you sell a residential property within two years of purchase you must pay income tax on any gains, unless you come within one of the exceptions. For trusts to have the protection of this exception: The property must have been the main home of a beneficiary of the trust; and The person who put the most into the trust principal settlor , must not own a different main home.
An example of this is Bernard who has two properties, a family home which he lives in, and a student flat which his son lives in while studying. Bernard puts the student flat into a trust and makes his son a discretionary beneficiary of the trust.
For advice on family trusts contact Rachael Dewar Law - Wellington
The trust cannot use the main home exception because the principal settlor of the trust Bernard has another main home. The requirement that the property is occupied mainly as a residence is the key part of the exception, ensuring that properties used mainly for investment or other purposes must pay tax. Where to from here? If you are a Trustee of a Trust and the Trust is anticipating entering into a property transaction in the near future it is important that you make sure you can comply with these new requirements.
How to find out if you are a beneficiary
If you are uncertain about how this might affect you, please get in touch. Click here for more on Trust Law. What's a trust and when do i need one? Twenty years ago the establishment of a family Trust was as popular as joining a crossfit gym is today. Unlike joining a gym, the establishment of a family Trust required little physical exertion and was relatively painless in the hands of a good lawyer.
Unfortunately, over the last several years this has given Trusts a bad reputation and their popularity has decreased unnecessarily. Business Finance Management Nonfiction. Availability can change throughout the month based on the library's budget. You can still place a hold on the title, and your hold will be automatically filled as soon as the title is available again.
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Trusts and Asset Planning
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