About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, August 20th, 4:08PM
rss
Latest Headlines

Memorandum of Wishes

When a Trust is established, the settlor usually has an intended purpose for the Trust, both during their lifetime and after their death. A Memorandum of Wishes allows the settlor of the Trust to inform the trustees what these intentions are.

Wednesday, April 4th 2001, 5:11PM

The trustees of a discretionary Family Trust need to have some direction from the settlors as to how the Trust should be run and how they should use their powers of discretion. The Trust Deed will provide some of this information, such as who the discretionary beneficiaries are, but guidance for the trustees in relation to other areas may be advisable if the settlors intended purpose is to be achieved. This is a fairly simple document, which can be easily changed as family circumstances change.

Areas covered by a Trust’s Memorandum of Wishes may include:

  • Trust distribution date
  • Management of Trust assets
  • Distributions of income and capital
  • Use of trustees discretionary powers
  • The maximum term that a Trust can run for is 80 years (with the exception of Charitable Trusts that can continue into perpetuity). However, Trust Deeds generally allow for distribution prior to this time if the trustees agree in writing to do so. The trustees, as independent parties, would need to know how long the settlor intended the Trust to run to effectively perform their duties.

    The trustees are charged with managing assets held within a Trust on behalf of the beneficiaries. The Memorandum of Wishes can provide the trustees with guidance in setting the strategy they should maintain both while the settlors are alive and after their death.

    Similarly, intentions regarding how and when the income and capital of the Trust is distributed can be set out in a Memorandum of Wishes. These may include whether all beneficiaries are to be treated equally or whether specific circumstances should be taken into consideration when making distributions. The settlors may also indicate that they intend for some or all of the income added to the capital of the Trust each year to enable further growth, or that all income be distributed to the beneficiaries.

    Trustees also have general discretionary powers in relation to the management of the Trust. A Memorandum of Wishes can direct how the trustees exercise these powers during the life of the Trust.

    It should be noted that while a Memorandum of Wishes is not a legally binding document, it is a useful addendum to the Trust Deed to provide guidance to the trustees on how the trust should be managed.

    The above information is of a general nature only as everyone’s personal circumstances are different.

    « The Personal Property Securities Act 1999: Ready, Set, File!Appointing A Trustee Company As An Agent »

    Special Offers

    Commenting is closed

     

    print

    Printable version  

    print

    Email to a friend
    News Bites
    Latest Comments
    Subscribe Now

    Mortgage Rates Newsletter

    Daily Weekly

    Previous News

    MORE NEWS»

    Most Commented On
    Mortgage Rates Table

    Full Rates Table | Compare Rates

    Lender Flt 1yr 2yr 3yr
    AMP Home Loans 7.24 5.99 6.39 6.65
    AMP Home Loans $200k+ 7.14 5.89 6.29 6.55
    AMP Home Loans LVR <80% - - 5.85 6.29
    ANZ 6.74 6.05 6.49 6.65
    ANZ LVR > 90 6.74 6.55 6.99 7.15
    ANZ Special - - 5.99 -
    ASB Bank 6.75 6.09 6.40 6.65
    ASB Bank Special - - 5.99 -
    BankDirect 6.75 6.09 6.99 6.65
    BankDirect Special - - 5.99 -
    BNZ - Classic - - 5.99 6.25
    Lender Flt 1yr 2yr 3yr
    BNZ - GlobalPlus 6.74 5.99 6.39 6.59
    BNZ - Mortgage One 7.15 - - -
    BNZ - Rapid Repay 6.74 - - -
    BNZ - Std, FlyBuys 6.74 5.99 6.39 6.59
    BNZ - TotalMoney 6.74 - - -
    Credit Union Auckland 6.70 - - -
    Credit Union Baywide 6.45 5.90 6.50 -
    Credit Union North 6.45 - - -
    Credit Union South 5.75 - - -
    eMortgage 6.04 6.15 6.69 7.19
    Finance Direct 6.10 6.45 6.69 7.10
    Lender Flt 1yr 2yr 3yr
    First Credit Union 6.45 - - -
    General Finance 5.95 6.25 6.50 7.10
    HBS Bank 6.15 5.85 5.99 6.25
    HBS Special - - - 5.95
    Heartland 6.45 6.75 7.00 7.60
    Heretaunga Building Society 6.25 5.85 6.50 -
    Housing NZ Corp ▲6.74 ▼5.99 ▼6.19 6.60
    HSBC Premier 6.84 5.95 ▼5.95 ▲6.55
    HSBC Premier LVR > 80% - - - -
    HSBC Special - - - -
    ICBC 6.75 5.99 6.39 -
    Lender Flt 1yr 2yr 3yr
    Kiwibank 6.40 5.99 6.39 6.65
    Kiwibank - Capped 5.65 6.50 - -
    Kiwibank - Offset 6.30 - - -
    Kiwibank LVR > 80% - - 5.99 -
    Liberty 5.64 - - -
    Napier Building Society 5.80 6.00 6.70 -
    Nelson Building Society 6.95 6.15 6.60 -
    NZ Home Loans 6.85 6.09 6.40 6.65
    Perpetual Trust 7.70 - - -
    RESIMAC - lo doc 7.59 7.06 7.38 7.82
    RESIMAC LVR < 80% 6.59 6.06 6.38 6.82
    Lender Flt 1yr 2yr 3yr
    RESIMAC LVR < 85% 7.59 7.06 7.38 7.82
    RESIMAC LVR < 90% 8.59 8.06 8.38 8.82
    SBS Bank 6.15 5.85 5.99 6.25
    SBS Bank Special - - - 5.95
    Silver Fern 5.95 6.10 6.55 7.05
    Sovereign 6.85 6.09 6.40 6.65
    Sovereign Special - - 5.99 -
    The Co-operative Bank 6.70 6.00 6.00 6.25
    TSB Bank 6.74 6.00 6.19 6.60
    TSB Special - - 5.80 -
    Wairarapa Building Society 6.20 5.75 5.95 -
    Lender Flt 1yr 2yr 3yr
    Westpac 6.59 6.09 6.39 6.65
    Westpac - Capped rates - 6.74 6.99 -
    Westpac - Offset 6.59 - - -
    Westpac Special - - 5.99 -
    Median 6.70 6.06 6.39 6.65

    Last updated: 20 August 2014 11:36am

    News Quiz

    Pathfinder's monthly commentary questions whether world equity markets are in bubble territory given the S&P500 has done what since "the grim days of early 2009"? Their answer is worth reading!

    increased 139%

    increased 93%

    increased 39%

    increased 19%

    increased 193%

    MORE QUIZZES »

    About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
     
    Site by PHP Developer and eyelovedesign.com