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, info@gra.co.nz or via our website.
I would like to express my sincere thanks to yourself and the team at GRA / Cornwall Trustees for the services you recently provided to my Trust. You were both professional and expedient in organising for Skeates Law and yourselves to execute the conveyancing of my property into the Trust to allow the title to reflect the correct Trustee names at LINZ and on the local council rating system in time for my advertising the sale of this property. I am sure that you have a team supporting you that allows you to make quick decisions and for these decisions to be executed with accuracy and pace that provided such an excellent service to my Trust. This also reminds me of an old L.V Martin television advert where their motto was "it’s the putting right that counts" and you certainly did do this in my case. In return you have a very satisfied client who wishes to convey their appreciation of their experience. Kind regards - Pravin
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