Trust Compliance
Wednesday 22 July, 2020![Trust Compliance](https://mwis.co.nz/wp-content/uploads/2020/07/iStock-972042658-1568x1175.jpg)
The Trust Act 2019 comes into force on 30 January 2021.
This legislation is the first overhaul of trust law in over six decades. This legislation will apply to a majority of existing trusts and also any newly formed trusts.
Current trusts will have 18 months to ensure they are compliant with the new Act.
New Obligations
- Trustees are required to keep the core documents i.e. Trust Deed, variations, records of the trust property, written contracts and accounting records.
- Beneficiaries must be told if they are a beneficiary of the trust and they must be regularly provided with information about the trust without them needing to request it.
- Trustees are obligated to ensure trust compliance.
How do these obligations affect you?
- Compliance duties will increase. This may mean that the time and cost for administering trusts may outweigh the benefits of the trust.
- Trust transparency will increase – this may have an impact on some trust owners who may prefer to keep some things private.
If you are a trustee or a trust settlor, you will need to ensure you are fulfilling your obligations from 30 January 2021.
What do you need to do?
Now is the perfect time to undertake a review of your trust.
Contact MWIS Lawyers and make an appointment to make sure that your trust is:
- Compliant
- Fit for purpose
- Cost-effective