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New Trusts Act 2019:
accelerateonline • Nov 07, 2019
What you need to do
If you’re protecting your family property in a trust, there may be changes you need to make before the new Trusts Act comes into force in January 2021.
The changes to the Trusts Act (the first in more than 60 years!) aim to make trust law more efficient and accessible, lower admin costs, simplify core trust principles and essential obligations for trustees, and make it easier to resolve disputes.
While it might seem an eternity away, 2021 will whip around quickly, so here’s what you need to do.
- Review your trust: Meet with your accountant and lawyer to review arrangements for your trust. There might be opportunities to improve your tax structure, reduce your risk profile and better your family’s financial situation.
- Revisit your succession planning: The new legislation has extended the maximum life-span of trusts by 45 years, to 125 years. This means you’ll need to make significant succession planning adjustments.
- Be prepared for beneficiary requests: The new law means most trust beneficiaries will be able to request financial reports on the state of the family trust and find out ‘who gets what’. Be prepared for extra admin, costs and possibly damage control if you’re having to avoid family issues around distribution of funds.
- Know your responsibilities as a trustee
, which include:
- Knowing the terms of the trust
- Acting according to the terms of the trust
- Acting honestly and in good faith
- Holding trust property
- Acting for the benefit of the beneficiaries or the permitted purpose
- Exercising trustee powers for a proper purpose
Accelerate - December 2023
Accelerate August 2023
Inland Revenue have recently announced this year’s livestock Herd Scheme Values and we think this is a great opportunity to update you on the latest movements. The Herd Scheme Values are the National Average Market Values, determined by a process involving a review of the livestock market as at 30 April.
The values for Dairy this year have seen a fall in values across all female classes, but increases across all male classes. The fall in R1 heifer values can be attributed to the prohibition of live export by sea commencing from 30 April 2023. For the first time the National Average Market Value for R1 Heifers is less than the National Standard Cost of breeding and rearing an R1 Heifer.
In contrast to Dairy values Beef values have increased on average 9% and are almost at record values for all classes.
Sheep values have all fallen from the high of 2022, slipping back an average of 10.2%. Whilst values have fallen, they are still either the second or third highest that they have ever been depending on which class of sheep you are looking at.
Goat values have increased on average 7.8% with almost all classes of fibre and meat producing goats at record highs. The value of milking goats continues to be well down from historic highs, except for breeding bucks which are at their highest value.
Like the rest of the world, New Zealand has reeled from the aftermath of Covid, rising inflation and interest rates, and the cost-of-living crisis. This year we also have a massive storm damage repair bill.
Any tax cuts, or changes to the tax thresholds were vetoed in Budget 2023 as this was viewed as worsening inflation.
Budget 2023 builds on the $889m already provided in response to this year’s storms. A further $6b is allocated for a National Resilience Plan , for rebuilding after weather events. $71b is committed to new and existing infrastructure projects: not only storm damaged communications, power and roading, but schools, hospitals, public housing, rail and road.
