You may be aware that the legislation with regards to Trusts has been reviewed and the new Trusts Act 2019 comes into effect on 31 January 2021 (“the Trusts Act”). This change in Trust law has been a long time coming as the Trusts Act replaces the 63 year old Trustee Act 1956 and the 55 year old Perpetuities Act 1964. The intended purpose of the Trusts Act includes:

(a) setting out the core principals of trust law;

(b) making trust law more accessible;

(c) improving transparency in the administration of trusts; and

(d) providing a mechanism to resolve disputes.

It is now more important that ever that trustees are aware of their rights and duties when managing Trust property. Below is a link to a brief summary of the main changes in Trust law under the Trusts Act.

In anticipation of the Trusts Act coming into force we are currently reviewing all Trust Deeds we hold on behalf of our clients. We encourage you to also review your Trust Deed. Below is a link to a Questionnaire for you to complete as part of your review.

This is also an opportune time for you to review, in addition to your Trust Deed, your:

(a)   Memorandum of Wishes;

(b)   Deeds of Delegation; and

(c)   Will.

You may decide that your trust is no longer required or does not now serve the purpose that it was originally set up for. If this is the case you may wish to discuss with us whether your Trust is still a viable and useful option for you or whether you may wish to consider winding up your Trust. 

Where Jon Webb is currently a trustee of a Trust in his personal capacity he will be retiring as a trustee and replaced with either an independent trustee of your choice or one of the Trustee Companies which we have set up for this specific purpose.

The Trusts Act requires active participation of all trustees in the management and operation of the trust. Under the Trusts Act, it appears trustees will be more accountable to beneficiaries than we have seen before under New Zealand trust law.

The new obligations under the Trusts Act make our role as a professional independent trustee more important than ever. In addition to adding legitimacy to your trust we provide:

(a) independent contributions to decision making; and

(b) legal oversight of the trust to ensure trustees comply with the Trusts Act.

We do not charge an annual fixed fee for being a professional independent trustee. The services we provide will be charged primarily on a time spent basis. Our services include:

(a)   providing advice on the Act;

(b)   providing trust administration services;

(c)    reviewing financial accounts annually;

(d)   Gifting.

In some instances our fee will take into consideration other factors such as urgency, complexity or importance of matter, the responsibility involved and the outcome achieved. At present our hourly rates are as contained in our Terms of Engagement and Information for Clients which can be found below.

We would be pleased if you could complete the Questionnaire below and email to us as soon as possible. You can email the Questionnaire to kerryn.ferguson@webbgould.co.nz.

Once we have received that we can then assess any further action that needs to be completed in regards to your Trust.