About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Thursday, January 29th, 12:15PM
rss
Latest Headlines

The evolving world of personal trusts

Tower Trust (formerly Trustees Executors) has been a leader in the Trusts marketplace for many decades but over the past forty years Trusts have undergone fluctuations in both their nature and public acceptability.

Wednesday, December 12th 2001, 2:27PM

Previously Trusts were used by the relatively wealthy and by business people but middle New Zealand had little interest or concern. These Trusts were known as family Trusts or inter-vivos Trusts. They were often extensive documents with wording few people understood and they were expensive to set up.

A big boom in Trusts had occurred around 1960 following the impact of the Nordmeyer Black Budget. That drove many people to set up Trusts to reduce the impact of death duty and taxes. For example, in 1969 even an estate over $12,000 in value paid death duty.

The 1970s saw high inflation increasing asset values and death duty exemption limits progressively raised. By the end of the 1980s governments no longer saw the opportunity or had the desire to raise revenue from death duty.

Tower Trust's solution in 1990 was the development of a new type of Trust and in November of that year we launched a new concept called Personal Trusts. It took trust deeds and reduced them down to a few pages in length - they were written in plain English, and they cost a fraction of the price of the old Trusts to set up. They created interest particularly when making legacies during a person's lifetime, but there was no major factor driving people to use them.

Shortly after that, the then government met an election promise and abolished the superannuation surcharge, but at the same time announced a new means testing arrangement for superannuation. This arrangement was never implemented because of the public outcry but the intent was for a comprehensive assets and income test to qualify people for state funded superannuation. There was a proposed abatement regime that reduced the pension relative to a person's income.

All this resulted in an enormous interest in asset protection and what we now call Personal Trusts. People realised that they could not be assessed on what they did not own - so they set up Trusts which could be used to remove assets from their own name.

Over the next few years we saw more interest in Trusts to help with asset testing. The government was sending a clear signal that people needed to meet rest home fees from their own resources before looking to the government.

Today Personal Trusts are commonplace - they have been with us for centuries and they continue to evolve because the fundamental need to protect assets remains. They are at the very core of modern personal asset management.

Today people in business now face the prospect of legal actions and even bankruptcy if their own debtors can't pay them. There is a lot more litigation in society and we have changes in matrimonial legislation where people are wanting to protect assets for themselves and children.

Tower Trust has been a leader and innovator in this fascinating field. It will continue to lead change in this area.

For more information on Personal and Family Trusts, call Tower Trust toll-free on 0800 Tower Trust (0800 869 378).

« Public Trust's free will-making service threatenedThe will as an effective estate planning tool…but not your will »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Demand for simpler trauma policies
    “The Lifecare product that Fidelity offer is a good way around the problem. I think a lot of people do not understand it. Appreciate...”
    7 days ago by Wall
  • Time to address advice accessibility: Body
    “The problem is that you can give an adviser as much technical ability and education as you like, but in the end it comes...”
    7 days ago by traveller
  • Investors told: Don't bail out just yet
    “Gibbson, I've just spent almost a month in the USA. Both the east and west coasts. Things looked pretty good to me. ...”
    8 days ago by John Milner
  • Time to address advice accessibility: Body
    “Let’s be honest – much of this CPD business is a waste of time for numerous reasons. In NZ some CPD is sponsored by...”
    8 days ago by Brent Sheather
  • Self-regulation a focus for 2015
    “Not sure about the case for the "international move to encourage self-regulation". The Canadian association may be advocating...”
    8 days ago by dcwhyte
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 5.69 6.19 6.55
AMP Home Loans $200k+ 7.14 5.59 6.09 6.45
AMP Home Loans LVR <80% - - 5.75 6.09
ANZ 6.74 6.09 6.09 6.39
ANZ Special - 5.59 5.55 5.99
ASB Bank 6.75 5.99 ▼6.09 6.39
ASB Bank Special - 5.59 ▼5.55 5.59
BankDirect 6.75 5.99 ▼6.09 6.39
BankDirect Special - 5.59 ▼5.55 5.59
BNZ - Classic - 5.69 5.75 5.59
BNZ - GlobalPlus 6.74 5.89 6.19 6.29
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.89 6.19 6.29
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 6.05 6.20 -
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
First Credit Union 6.45 - - -
Lender Flt 1yr 2yr 3yr
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.65 5.69 5.74 ▼5.79
HBS Special - 5.59 5.49 ▼5.49
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.70 6.00 6.30 -
Housing NZ Corp 6.74 5.70 6.09 6.29
HSBC Premier 6.84 5.45 5.65 ▼5.79
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Kiwibank 6.65 5.69 6.09 6.29
Lender Flt 1yr 2yr 3yr
Kiwibank - Capped - - - -
Kiwibank - Offset 6.55 - - -
Kiwibank LVR > 80% - - 5.55 5.89
Liberty - - - -
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 6.59 ▼6.03 ▼6.10 ▼6.19
SBS Bank 6.65 5.69 5.74 ▼5.79
SBS Bank Special - 5.59 5.49 ▼5.49
Lender Flt 1yr 2yr 3yr
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 5.99 6.19 6.39
Sovereign Special - 5.59 5.75 5.59
The Co-operative Bank 6.70 5.59 5.59 5.74
TSB Bank 6.74 5.95 6.19 6.30
TSB Special - - 5.79 -
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.79 ▼5.89
Median 6.70 5.95 6.09 6.29

Last updated: 28 January 2015 11:34am

News Quiz

A well-commented on story last week mooted that many authorised financial advisers are out of their depths discussing what with their clients?

bonds

death

divorce

piles

birth control

MORE QUIZZES »

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