GRA Blogs

Articles by The Professional Trustee Team

Trustee Duties

AUTHOR: The Professional Trustee Team

POSTED: 02 July 2021

So you have set up a trust and you are a trustee, and you wonder, “what are my obligations as a trustee?”

To answer that question we turn to the Trusts Act. Under this Act there are two classes of trustee duties, being mandatory and default. The mandatory duties are what they sound like. They are irrefutable obligations that trustees must abide by. On the other hand, default duties can be rebutted by terms of the trust deed.

Mandatory Trustee Duties

So with this in mind what are the mandatory duties of a trustee? Fortunately, they are likely what you would expect to be the case and how you would likely behave as a trustee in any event.

a) You must know the terms of the trust.

b) You must act in accordance with the terms of the trust.

c) You must act honestly and in good faith.

d) You must hold or deal with trust property and otherwise act (i) for the benefit of beneficiaries, in accordance with the terms of the trust; and (ii) where the trust has a permitted purpose, to further that permitted purpose in accordance with the terms of the trust.

e) Exercise your powers for a proper purpose.

In addition, trustees have an obligation to retain documents relating to the trust. Every trustee must have a copy of the trust deed and any variations to it. On top of that, at least one trustee must have the following documents:

a) Records of the trust property that identify assets, liabilities, income and expenses

b) Records of trustee decisions

c) Any written contracts entered into by the trustees

d) Deeds of appointment and removal of trustees

e) Any memorandum of wishes from the settlor

f) Any other documents necessary for the administration of the trust

If you are a trustee of a trust and you are concerned about complying with these mandatory duties or keeping trust records, then please contact us at GRA. We offer a professional trustee service and can assist. Phone +64 9 522 7955, info@gra.co.nz or via our website.

Request a Meeting

The Professional Trustee Team

09 522-7955

info@gra.co.nz

© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

Comments

Testimonials

Hi Salesh, I just wanted to send you an email on behalf of GRA to say how fantastic we have found your company to date. As you know, Ben and I joined GRA a couple of months ago and have just found you so amazingly helpful in getting our new property set up correctly and sorted out. We have what I would consider a rather complicated structure as a result and it’s a fantastic feeling to know that we are getting everything done in the best way possible. We have just had approval to put a minor dwelling on the property which will make a massive difference in terms of cash flow and obviously value, something we would never have even thought of without GRA and which we are very excited about. During the buying process we attended a seminar with Matthew and from the outset thought he was fab. We therein signed up for property school and found this nothing short of fantastic. The content was relevant, up to date and comprehensive, but more importantly it was taught in a way that we could actually understand and really get value out of. I wanted to mention also, that everybody GRA have recommended to us has been just so efficient and absolute masters at what they do. A wonderful network of people that we feel very lucky to now be able to call on. From Kris Pederson and Bryan Rist who put our mortgage together to the insurance guys they then referred us to, I’m super impressed. Within GRA, Ellery has probably turned things around for us faster than I’ve ever known before, something which we appreciated so very much when it came to crunch time. She’s always a pleasure to deal with and again, we’re stoked. We’ve just settled on the property today and are about to go and get the keys. I’m pretty pumped and hence this email is probably rather excitable. So, a massive thank you to you Salesh, the partners for such a fabulous 6 weeks at property school and everyone at GRA for their help. May this be the start of our property empire. Thanks again, - A & B - July 2015

We can help

Here's how

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