Trusts
Trusts have proven a very popular way of protecting assets in NZ, with well over 100,000 trusts existing here.
The trust is a versatile structure capable of delivering asset protection and possibly significant income taxation, estate planning and succession planning advantages.
These features are dependent on proper and adequate structure and administration.
Potential taxation traps and opportunities are often overlooked when trusts are formed administered or resettled.
More and more trusts are being challenged by disgruntled beneficiaries and the courts have punished those trusts that fail to meet the required fiduciary standard of care towards beneficiaries. There is significant risk for both the trust and trustees who do not maintain a trust to the required standards. Trusts and the responsibility of ongoing administration are not suitable for everyones needs.
Professional chartered accountants like Silks can help determine whether a trust suits your needs and to ensure the structure and administration is maintained to the required standards.
