Trust law reform: the lowdown
The new Trusts Act 2019 took effect on January 30, 2021. The act updates and improves the law governing trusts for the first time in more than 60 years. It will apply to all existing trusts in New Zealand, as well as any trust created on or after its inception.
With trusts being a key part of financial planning, it is crucial that all advisers understand the impact of the new act.
The Ministry of Justice has said that “clarifying the trustee role could mean in practice trustees need to widen their current level of responsibility”.
That sentiment is echoed by Henry Stokes, general counsel at Perpetual Guardian, who says, “The biggest thing for anyone who has, or is looking to establish, a family trust [to be aware of] is the rise in information that beneficiaries are entitled to.
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