Clients with Trusts and all Trustees

A reminder that the long awaited “The Trusts Act 2019” comes into effect from 30 January 2021.

 

From our lawyers in my newsletter last July:

 

The new Act will apply to all existing and future trusts in New Zealand, which makes it relevant to you. It primarily serves as a restatement and clarification of existing trust law, in a way which modernises the outdated and often-confusing old Act. Its purpose is to make trust law simpler, more transparent, and more accessible to the general public. Overall, the Act:
 

  • Increases compliance requirements imposed on trustees;

  • Improves beneficiaries’ access to information;

  • Requires much higher levels of transparency around trust activity; and

  • Increases the scope for beneficiary claims against trustees and professional advisors.

 

Trustees in particular need to ensure that they understand the key features of the Act and discuss their obligations with their advisors in order to avoid any potential legal ramifications.

 

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