A new Trusts Act for NZ

The New Zealand Government passed the Trusts Act 2019 in July 2019. 

The passing of the Trusts Act 2019 follows a comprehensive 10-year review of New Zealand trust law. The new Act takes effect on 30 January 2021 and at that time it will replace the Trustee Act 1956.

The new Act will:

• make trust law easier to understand and more accessible for trust creators, trustees and beneficiaries

• impose mandatory trustee duties (and default trustee duties which will apply unless they are amended within the trust deed)

• obligations to give certain information to beneficiaries

• requirements for trustees to retain core trust records

• clear rules for when people make changes to a trust or wind them up

• more options for removing and appointing trustees

• ability to delegate some powers

A copy of the new Act can be obtained here.

With a short 18-month window, all trustees should be making themselves familiar with the terms of the new Act and ensuring they are complying before the new Act comes into force.

Lindsay