Should you have a trust?

Trusts Services New Zealand
Trusts can provide a multitude of benefits depending upon your circumstances. Those benefits include:
  • Providing for your family after you are gone as a form of estate planning
  • Safeguard your assets from unexpected financial misfortune
  • Protect your assets or heirlooms from certain relationship property claims or creditors
  • Prevent claims against your estate and ensuring that your beneficiaries have access to their inheritance without it being held up in probate
  • Prepare for the time when you may need residential care
  • Obtain certain tax advantages (if applicable)
  • Anticipate and make allowances for capital gains or death taxes
  • Business owners can protect their family home and other assets against business debts under family trusts
  • Shelter life insurance policies from risk exposure and gifting issues
  • Preserve a high level of confidentiality concerning your finances
  • Set an age that you feel is acceptable for your beneficiaries to receive their inheritance

Memorandum of Wishes

In conjunction with setting up a trust the issue of a memorandum of wishes needs to be considered.

Many family trusts are set up as “discretionary trusts” i.e. who out of all of the beneficiaries will receive any distribution from the trust is up to the trustees to decide, receipt of a distribution is not automatic and should not be assumed.

The settlor of the trust may wish to provide guidance to the future trustees of the trust of their wishes. A memorandum of wishes will after the settlors passing, inform and hopefully guide the trustees by making a clear statement on how you wish the trust to be managed.

A memorandum of wishes can include:
  • Put money aside for particular purposes, such as weddings, funerals, education of certain beneficiaries;
  • Directions on distributions to beneficiaries who may spend the money unwisely;
  • Management of the trust’s assets;
A memorandum of wishes is not a legally binding document, it clearly sets out your wishes to the trustees however the trustees have complete discretion however it would be unwise of the trustees to disregard a memorandum of wishes.

For settlors those who want more certainty over the trustees decisions could consider a Deed of Distribution.

The Benefits of Using Norrie & Daughters

Trusts Services New Zealand

Experience

  • We can help you by preparing your Trust Deed and Memorandum of Wishes.
  • We can assist you by advising you on asset planning matters
  • We can facilitate the transfer of property into the trust.
  • We can provide an independent trustee.
  • We can help with trust administration and accounting, providing the rigour necessary to ensure the trust is not declared a sham trust.

Service

  • As a boutique accounting firm, Norrie & Daughters has a unique, holistic approach to how we deliver our services that allows us to provide a bespoke service to business owners, managers, individuals, and decision-makers in many industry sectors. We know that one size certainly does not fit all in New Zealand’s dynamic business landscape.
  • At Norrie & Daughters all of our team’s experiences and credentials blend to create a wealth of knowledge, understanding and personality. We work as a team to achieve our goal of providing our clients with an entrepreneurial style and practical approach to delivering what you require.
  • Our client-centered approach is instilled in every aspect of our own firm’s culture at every level, from directors to the administrative support staff.
Trusts Services New Zealand

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