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New Zealand trust law might change soon by Eugene Duhovnikoff BA/LLB

What might change?

  1. There would be a new Act related to trusts replacing the current Trustee Act 1956;
  2. The new statutory definition of a “trust” might be introduced. This definition will include a set of particular requirements necessary for a trust;
  3. Life of trusts might be extended from 80 to 150 years;
  4. The Family Court might be given the power to provide compensation to a partner via the trust’s assets where the partner’s claim would otherwise have been defeated, meaning that the Property Relationships Act 1976 is expected to be amended;
  5. The law related to the duties of trustees is expected to be clarified. The new Act would describe six mandatory duties and eleven default duties of trustees. Such duties would apply by default unless the trust deed states otherwise;
  6. The prohibition on limiting trustees’ liability for gross negligence is expected to be introduced. (At the moment the legal position is governed by case law);
  7. The prohibition on trustees receiving an indemnity for gross negligence is expected to be introduced. (At the moment the legal position is governed by case law);
  8. The trustees are expected to gain power to invest funds with discretion to determine if the return is “capital” or “income”. The statutory focus would be on the overall return. This means that the professionals from the investment industry could be appointed as trustees;
  9. Some of the rules that deal with changing the trustees will be amended and clarified;
  10. Courts’ powers in respect to overseeing trusts’ administration are expected to get wider;
  11. The District Courts are expected to receive the same jurisdictional powers in relation to trusts as the High Court, given that the amount in question does not exceed the District Court’s jurisdiction.
  12. Also, the Family Court might receive jurisdictional powers in certain cases.

 

At the moment the Law Commission is still reviewing the trusts law and it is not clear whether the Government will adopt any of the proposed changes.

 

No advice

This article contains general information about legal matters. The information is not advice, and should not be treated as such

Limitation of warranties

The legal information on this website is provided “as is” without any representations or warranties, express or implied. Reeves Duhovnikoff & Associates Limited  makes no representations or warranties in relation to the legal information on this website. Without prejudice to the generality of the foregoing paragraph, Reeves Duhovnikoff & Associates Limited does not warrant that: the legal information on this website will be constantly available, or available at all; or the legal information on this website is complete, true, accurate, up-to-date, or non-misleading.

 

No advice

This article contains general information about legal matters. The information is not advice, and should not be treated as such

Limitation of warranties

The legal information on this website is provided “as is” without any representations or warranties, express or implied. East Asian Business Development Centre L.P. and Simon Reeves Law Office makes no representations or warranties in relation to the legal information on this website. Without prejudice to the generality of the foregoing paragraph, East Asian Business Development Centre L.P. and Simon Reeves Law Office does not warrant that: the legal information on this website will be constantly available, or available at all; or the legal information on this website is complete, true, accurate, up-to-date, or non-misleading.

Professional assistance

You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider. If you have any specific questions about any legal matter you should consult your attorney or other professional legal services provider.

Reeves/Duhovnikoff & Associates Ltd. 2017

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