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.

What is a Trust

A Trust is an entity, which holds and owns property for the benefit of the beneficiaries. It allows you to transfer the ownership of property and other assets out of your own name so that they can be protected for a variety of reasons, whilst still maintaining control over them.

The formation of trusts is a practice that is becoming increasingly common for family units, individuals and entrepreneurs alike. No longer are trusts only available to the wealthy, today trusts are working tools that can help protect your property from third party claimants.

In New Zealand, people are becoming increasingly aware of the advantages that trusts offer and are beginning to establish trusts earlier in their lives, for the purpose of obtaining maximum benefit from the protection they offer.

Some common purposes of establishing a Trust are to:

+ Protect the family from adverse events;

+ Protect investment properties from third party creditors;

+ To gain tax advantages in certain circumstances;

+ Reduce the chance relationship property claims, and

+ minimise personal wealth in relation to asset tested benefits such as residential care subsidies.

If you are a property investor, own assets, are in a serious relationship, have children or own your own business, then setting up a Trust is something you should consider.

By removing assets from your personal ownership and transferring them to Trustees, you’re protecting them from any claims that could be made against you personally.

Whether this kind of asset protection benefits you depends on various factors, all of which are quite unique to your personal circumstances. At Property Tax Returns we can provide you with all the information you need to help you make that decision.

Ongoing Trust Administration

We provide expert trustee services for the life of your Trust to ensure that:

+ Accurate records are kept;

+ All tax and other legal requirements are met;

+ Trust documents are kept safe; and,

+ You are kept up to date on any law changes that could affect your Trust.

+ Once you decide what assets you’d like to transfer to the Trust there are a number of decisions to be made including:

+ Who you wish to be Trustee/s;

+ Do you want an advisory trustee or a protector;

+ Who should be the beneficiaries; and

+ How do you want the Trust to be run.

+ We can help you with these decisions and ensure all accounting and tax matters are dealt with correctly.

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

  1. Greater independence;
  2. Individual’s names do not appear on property titles;
  3. Limited liability for the Trustees;
  4. 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

Our Goal

Our goal is to offer you a timely and personal service so your Trust can be established quickly and accurately.
Please contact us today to make an appointment to discuss your structuring options.

Setting up a trust is easy

Trusts can be tailored to distribute assets however you may wish, minimise tax liabilities, and safeguard the future of your family. Trusts are only effective if they are set up with your needs and financial goals in mind.

We want to help you make informed decisions about creating a Trust.
For a quick, accurate and personal service get in touch with us today.

Speak with a Trust Expert

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Our simple guide covers everything you need to know about Trusts including;

+ Different Roles in a Trust
+ Taxation of Trusts
+ Advantages & Disadvantages
+ Structure Diagrams

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