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.
Hi I received a copy of your Property 101 book as part of subscribing to the Property Investor magazine. Once I started reading I couldn’t put the book down. I have 4 investment properties (all based in Upper Hutt, Wellington) but never really understood the science of property investing. I am so much more informed now that I have read your book. After reading your book I will approach my next purchase differently and be a much more informed investor. The weblinks also provide great sources of information to follow up on and a property mentor will be someone I will definitely be seeking out. At the end of the book it included an offer for a discussion with GRA which I am keen to take up. Regards - GH - September 2015
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.
Learn More