Best Trusts Lawyers in New Plymouth

About Trusts Law in New Plymouth, New Zealand

Trusts are a commonly used legal structure in New Plymouth and throughout New Zealand for managing and protecting assets. A trust is a legal arrangement in which a person or entity (the settlor) transfers assets to trustees, who hold and manage those assets for the benefit of beneficiaries. Trusts can provide protection from certain risks, ensure that assets are managed according to specific wishes, and help with estate and succession planning. In New Plymouth, as in the rest of New Zealand, trusts are governed by national legislation, including the Trusts Act 2019, which came into effect to provide clearer rules and guidance for all parties involved in a trust.

Why You May Need a Lawyer

While some people choose to set up trusts themselves, there are many situations where getting professional legal advice is important. You may need a lawyer if:

• You want to ensure that the trust structure is correctly established and complies with relevant laws
• You wish to protect assets for future generations or vulnerable family members
• You are dealing with complex family arrangements, such as blended families, or have concerns about business succession planning
• You need assistance with updating an existing trust following a change in family circumstances such as marriage, divorce, or the arrival of new children or grandchildren
• You have questions about your duties as a trustee or your rights as a beneficiary
• You require help resolving disputes regarding trust management or asset distribution
• You are concerned about tax implications or compliance issues related to trusts

Local Laws Overview

Trusts in New Plymouth are subject to the same laws and regulations that apply across New Zealand. The key piece of legislation is the Trusts Act 2019, which modernised and clarified the rules around trust creation, administration, and termination. Under the Act:

• Trustees have clear duties, including the duty to act honestly and in good faith, to manage the trust prudently, and to act in the interests of beneficiaries
• Beneficiaries have increased rights to information about the trust
• There are rules about how long a trust can last, usually not exceeding 125 years
• Trust deeds must be carefully drafted to reflect the settlor’s intentions
• There are stricter requirements for record keeping and decision making by trustees

Frequently Asked Questions

What is a trust, and how does it work?

A trust is a legal arrangement where a settlor transfers assets to trustees, who manage those assets for the benefit of beneficiaries as outlined in a trust deed.

Do I need a lawyer to set up a trust in New Plymouth?

While you are not legally required to use a lawyer, getting professional advice ensures the trust is set up correctly, complies with the Trusts Act 2019, and aligns with your goals.

What are the duties of a trustee?

Trustees must act in good faith, manage trust assets responsibly, keep accurate records, avoid conflicts of interest, and always act in the best interests of the beneficiaries.

Who can be a trustee?

Most adults can be trustees, though it is common to appoint a mix of family members, trusted friends, or professional advisors. Professional trustees often bring valuable expertise in managing trusts.

Can trusts help protect family assets from creditors or property claims?

Trusts can offer some protection, but they are not foolproof. There are laws preventing trusts from being used to deliberately defeat creditors or legal claims, so timing and intent matter.

How are trusts taxed in New Zealand?

Trusts are generally taxed on income earned, with the trustee tax rate at 33 percent. Distributions to beneficiaries may have different tax implications, and advice should be sought on your specific situation.

Can a trust be changed or revoked?

It depends on the terms of the trust deed. Some trusts allow for changes or termination, while others do not. Changing a trust often requires formal steps and sometimes agreement from all beneficiaries.

What information must beneficiaries receive?

Under the Trusts Act 2019, most beneficiaries are entitled to basic trust information, such as the existence of the trust, their entitlements, and the names of the trustees. Additional details may be provided on request, unless there is a good reason to withhold it.

What happens to a trust when the settlor dies?

Typically, the trust continues according to the trust deed and is managed by the remaining trustees or successors. The settlor’s death does not automatically dissolve the trust.

What can I do if I have concerns about how a trust is being managed?

Beneficiaries can request information and raise concerns with trustees. If issues are not resolved, they can seek legal advice, and in some cases, apply to the court for directions or to remove a trustee.

Additional Resources

If you need more information or support regarding trusts in New Plymouth, consider the following resources:

• New Zealand Law Society - provides guidance and a directory of local lawyers
• Community Law Canterbury and Community Law Waikato - these organisations sometimes assist with trust information for the wider region
• Public Trust - offers services and general advice on establishing and managing trusts
• Inland Revenue New Zealand (IRD) - for details on taxation of trusts
• The Trusts Act 2019 - available from the New Zealand Legislation website for full legislative details

Next Steps

If you are considering creating, reviewing, or managing a trust, or if you have concerns about your rights or responsibilities related to a trust, here is how you can proceed:

• Make a list of your questions and gather any relevant documents or information about your assets or current trust arrangement
• Contact a local law firm or specialist in New Plymouth who has experience in trust law
• Book an initial consultation to discuss your needs, objectives, and any concerns you have
• Follow legal advice on how to structure, update, or wind up your trust as appropriate
• Ensure regular reviews of your trust to keep it compliant with the latest law and your family situation