No doubt you've heard about the major trust law changes coming soon to NZ. What are they, and how will they affect you and your trust?
The main changes are:
Now, you might already be doing this, but here are some more changes; the new law lists core documents that all trustees need to retain:
If you are a client of EpsomTax.com Limited, you already do this.* But if you don't have up-to-date financial statements for your trust, you will have a lot of work (and expense possibly) ahead of you (contact us for a quote on 099730706). That might be this lady's problem...?
Anyway, another big big change for trustees is that you will need to tell the beneficiaries info such as:
BENEFICIARIES BECOME SETTLORS - HOW?
Here is the jargon: Section 67 of the Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 enacts an amendment to section HC 27 of the Income Tax Act 2007.
That amendment provides that when a beneficiary of a trust is owed an amount by the trust, the beneficiary does not become a settlor of the trust if –
How do you know if one of your beneficiaries is owed more than $25,000 by the trust? The trust will need a balance sheet, at the very least, to track this.
What should you do if this is the case?
Yikes! So, some big changes coming. For a more detailed summary, please visit this page at Rainey Collins.^
* See a link to our blog articles on this subject here
^ The information on this page has been kindly reproduced by permission of Rainey Collins. This does not constitute an endorsement of EpsomTax.com Limited by Rainey Collins. EpsomTax.com Limited cannot provide legal advice. Please contact Rainey Collins for more information on what this means for your trust.
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