Trusts are an important part of New Zealand society and the economy. It is estimated there are between 300,000 to 500,000 trusts in New Zealand. The Government is moving to update and improve the general law governing trusts for the first time in 60 years.
Generally, the proposed reforms seek to clarify core trust concepts such as what constitutes a trust and what duties a trustee has. The proposed changes are about making trust legislation more useful, fixing practical problems and reducing costs. The reform also aims to modernise outdated language and concepts. However, there is no requirement for existing trust deeds to be changed, as the draft legislation is all about restating existing law. Some of the proposed changes include:
We will keep you informed as the bill passes through parliament and becomes law.