Trust Creation and Management

One of the most common private and business ownership structures in New Zealand, is a discretionary trust.

The use of Trust structures for property investors is widespread in New Zealand as Trusts are popular and versatile structures with many benefits such as tax minimisation and asset protection.

Most Trusts we establish are Discretionary Trusts, meaning that what each beneficiary receives is not fixed in the Trust Deed, but is at the discretion of the Trustees.

We have set up and currently manage over 350 Trusts. We utilise internal resources and, where necessary, external law firms to set up and support our clients as required in this area.

Corporate Trustee

In the majority of property investment Trusts we create, we ustilise a Corporate Trustee. A Corporate Trustee is a Company which sole purpose is to act as the Trustee of a Trust.

The Directors are the day to day managers. However, the shareholders have the power of appointment of the Director and must approve transactions. In this way, the shareholders act as Trustees of the Trust.

Essentially, the Corporate Trustee company will simply be the vehicle for the persons who would otherwise be the Trustees personally.

Benefits of a Corporate Trustee

+ Greater independence;
+ Individual’s names do not appear on property titles;
+ Limited liability for the Trustees;
+ Trustees can be added and removed without amending property titles or lending documentation.

The use of a Corporate Trustee is a more flexible, forward thinking solution for Trust structures.

Our Fees

Trust Creation

Trust creation   =  $1,550 + GST

Corporate Trustee Set Up   =  $550 + GST

Annual Trust Administration Requirements

Trust and Corporate Trustee Minutes and Resolutions   =  $450 + GST

Annual Trust Administration Requirements

Annual Accounting and Tax Returns   =  $620 + GST

Full Financial Statements   =  $450 + GST

Additional Properties   =  $120 + GST

Trust Minutes = $120 + GST

ADDITIONAL FIXED COSTS IF REQUIRED

  • GST Returns $120.00 Per Return
  • Companies Office Annual Return $125.00
  • Companies Office Registered Office $150.00
  • *Full Financial Statements $450.00
  • Company Resolutions $120.00
  • Xero Set Up $350.00
  • Xero Subscription from $20 Per Month

*Full financial statements are only required if the properties are held in a company structure and have income or expenses greater than $30,000 per annum. In this case, full financial statements are required to meet the minimum reporting requirements under the Tax Administration Act 1994.

All prices are exclusive of GST.