TrustResettlement&Compliance
Trust resettlements, variations, wind-ups, and compliance with the Trusts Act 2019 - expert guidance for existing trustees.
How we can help
Many family trusts in New Zealand were established decades ago under different legislation and for purposes that may no longer apply. With the Trusts Act 2019 now in full effect, trustees across Auckland are re-evaluating whether their trusts remain fit for purpose. At Indus Legal, we help trustees understand their current obligations and make informed decisions about whether to resettle, vary, or wind up their trust.
Trust resettlement involves the creation of a new trust and the transfer of assets from the old trust to the new one. This is often necessary where the original trust deed is outdated, inflexible, or does not comply with the Trusts Act 2019. Resettlement can also be used to update trustee powers, modernise beneficiary classes, or reset the perpetuity period. Our lawyers manage the entire resettlement process, coordinating with your accountant on any tax implications and ensuring continuity of asset protection.
For trustees who simply need to bring an existing trust into compliance, we offer trust deed reviews, amendments, and compliance audits. We prepare the trustee resolutions, beneficiary disclosure notices, and record-keeping systems that the Trusts Act 2019 demands. If a trust has served its purpose and is no longer needed, we also guide trustees through the wind-up and distribution process, ensuring all legal and tax obligations are met before the trust is formally terminated.
What we help with
- Comprehensive trust deed reviews and compliance audits against the Trusts Act 2019
- Trust resettlements - drafting new deeds, transferring assets, and coordinating tax advice
- Trust variations and amendments to update outdated provisions
- Trust wind-ups and final distributions to beneficiaries
- Preparing trustee resolutions, meeting minutes, and beneficiary disclosure notices
- Advising on perpetuity period resets and modernising beneficiary classes
Frequently asked questions
What is a trust resettlement and when is it needed?
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A trust resettlement involves winding up an existing trust and settling its assets into a newly created trust with an updated trust deed. It is typically needed when the original deed is too inflexible or outdated to be amended, when the perpetuity period is approaching its limit, or when the trust structure no longer reflects the settlor's intentions. Resettlement allows you to start fresh with a modern deed that complies with the Trusts Act 2019.
What happens if my trust is not compliant with the Trusts Act 2019?
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If your trust does not comply with the Trusts Act 2019, trustees risk breaching their mandatory duties, which can lead to personal liability. Beneficiaries may also apply to the court for review of trustee conduct. Non-compliance does not automatically invalidate the trust, but it exposes trustees to legal risk and can undermine the trust's effectiveness. We recommend a compliance review as soon as possible to identify and address any gaps.
Can I just wind up my trust if I no longer need it?
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Yes, a trust can be wound up if it has served its purpose or is no longer beneficial. The process involves trustee resolutions, distribution of assets to beneficiaries in accordance with the trust deed, settling any debts or liabilities, and filing any necessary tax returns. Our team ensures the wind-up is handled correctly so that trustees are released from their obligations and there are no outstanding legal or tax issues.
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