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The law of Trusts in Wellington, New Zealand is based on English Common Law and statutes passed by the New Zealand Parliament. A trust is a legal relationship created when a person (the Settlor) gives property to another person (the Trustee) to hold for the benefit of a third party (the Beneficiary). Trusts can be created for various purposes such as estate planning, asset protection and charitable purposes.
Dealing with Trusts can be a complex process, starting from setting up the trust, administering it, and dealing with any disputes that may arise. Common situations where you might need a lawyer include drafting a trust deed, ensuring the trust complies with all the legal requirements, settling disputes between trustees and beneficiaries, and the winding up of trusts. A trustee has a legal obligation to act in the best interest of the beneficiary, and legal advice is often necessary to meet this obligation.
The Trusts Act 2019 is the primary legislation governing trusts in Wellington, New Zealand. This Act sets out the core principles of trust law, duties of trustees, and mechanisms for resolving disputes. Trustees have both mandatory and default duties under the law. Mandatory duties, that cannot be modified or excluded by terms of the trust, include duty to know the terms of the trust, to act according to them, to act honestly and in good faith, and to hold or deal with trust property for benefit of beneficiaries.
Trustees have an obligation to administer the trust in the best interest of the beneficiaries, to avoid any conflicts of interest, to act impartially and to invest trust property wisely. They should also provide necessary information to beneficiaries as required by law.
Under the Perpetuities Act 1964, a trust can last for up to 80 years in New Zealand.
Yes, a trust can be contested in certain circumstances, such as when a trustee is believed to have breached their duties or when the validity of the trust itself is in question.
When a trust ends or is wound up, the trust property is transferred to the beneficiaries in accordance with the provisions of the trust deed.
Trusts can play a crucial role in estate planning, when a person wants to pass their assets to their loved ones in a controlled way, possibly reducing tax liability and protecting the assets from creditors' claims.
Check the New Zealand Ministry of Justice website for more information on trust laws in New Zealand. The New Zealand Law Society also provides advice and referrals to solicitors who specialize in trust law.
If you believe you need legal assistance in trusts, it is recommended to consult with a lawyer specializing in trust law. They can help you understand your legal obligations and rights, draft necessary documents, and guide you through possible disputes and resolution mechanisms. It's advisable to gather all necessary documents and information relevant to your trust before your consultation to ensure a smoother process.
