Trusts Lawyers in New Zealand

A specialisation of Wills & Estates practice area

Understanding Trusts in New Zealand

Trusts are an important part of the legal system in New Zealand. They help people manage their money and property in a way that protects their interests and those of their loved ones. A trust is like a special agreement where one person, called the trustee, looks after money or property for another person, known as the beneficiary.

What is a Trust?

A trust is created when someone (the settlor) decides to put their assets, like money, a house, or investments, into a trust. The trustee then manages these assets for the benefit of the beneficiaries. For example, if a parent sets up a trust for their children, the trustee will make sure the money is used for the children's education or other needs.

Types of Trusts

There are different types of trusts in New Zealand, including:

• Family Trusts: These are often set up to protect family assets and ensure they are passed down to future generations.
• Charitable Trusts: These are created to support charitable causes and help the community.
• Testamentary Trusts: These are set up in a will and come into effect after someone passes away, helping to manage the deceased's assets for their beneficiaries.

Why are Trusts Important?

Trusts are important in New Zealand for several reasons:

• Protection of Assets: Trusts can protect your assets from creditors or legal claims, ensuring that your loved ones receive what you intended for them.
• Tax Benefits: Some trusts can offer tax advantages, helping to manage how much tax you pay on your income and assets.
• Control Over Distribution: Trusts allow you to decide how and when your assets are distributed, which can be especially useful for young children or family members who may not be ready to manage money on their own.

Conclusion

In summary, trusts play a vital role in the New Zealand legal system. They help individuals and families manage their assets wisely and ensure that their wishes are carried out. Whether you are looking to protect your family's future or support a charitable cause, understanding trusts can help you make informed decisions about your financial planning.