In just 14 days the new Trust Act 2019 will come into law from 30 January 2021. Be sure to talk with a financial adviser with a fiduciary responsibility to review your objectives and goals to ensure that the trust is still relevant and is being properly managed.
The Trusts Act 2019 ("Act") will take effect from 30 January 2021. Running trusts under the new regime can be divided into three components — functional, emotional, and ethical. Neglecting to invest trust property or poor investment choices can be reasons for the breakdown of trusts.
Whilst no one sets out to leave a financial mess behind if they lose mental capacity or pass away, but if you want to leave your family fond memories rather than confusion and conflict, you need to properly consider and document your legacy plans.
On 30th July, an important piece of legislation which affects many people received a Royal Assent but received little media attention. It’s the Trusts Act 2019. With New Zealand having the highest number of trusts per capita in the world, new landmark legislation has critical implications for the thousands of trustees and many more beneficiaries of these structures.
Their disclosure obligations in the new trust act will increase the reputational and liability risk of not properly engaging with investment governance practices.
The proposed law changes will mean the right to have the trust properly managed, in accordance with the trust deed, is paramount. Many trustees will need to balance these considerations, and it will be difficult.
With 300,000 to 500,000 trusts operating in New Zealand, a new trusts bill introduced to Parliament earlier this year has the potential to deliver wide-ranging impacts.
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