A trusted team: White Fox & Jones
With increased compliance and accountability requirements on trusts, now is the time to review your asset management plans.
Trusts have historically been a common tool for holding assets such as property and investments, and are helpful for estate planning. While trusts can still have a place in modern life, including potentially protecting the assets of business owners from creditors, the changes to the Trusts Act – which came into effect in 2021 – have some families and individuals questioning whether a trust is still necessary.
Setting up a trust is becoming less relevant, and we are seeing fewer and fewer trusts being created. Often, a well prepared will or contracting out agreement will be more suitable for your circumstances than a trust. Now is the time to determine what other forms of asset protection may be best for you and your family.
If you have a trust, does it still achieve, and protect, what it was intended to when it was first established?
There are now increased obligations on trustees to disclose trust information to beneficiaries and additional reporting requirements to the IRD, not to mention the recent increase to a 39% tax on all trust income. It may be that these changes outweigh any benefit your trust provides to you and your family.
If that is the case, there are several options that can
be explored to ensure your trust is still fit for purpose. These options include amending the terms of your trust, so it is appropriate for your current requirements or considering winding up the trust.
The White Fox & Jones legal team are highly experienced in trust law and can advise on the best ways to safeguard your assets and plan for your family’s future.
