Trust law under Commission spotlight
Wednesday 14 November 2012
Trusts are in the Law Commission’s sights as it looks to modernise trust law in New Zealand.
Commission president Grant Hammon said that because trusts were an important way of managing personal and family property, it was vital that New Zealand had robust tax laws.
He said trusts were unusually common in New Zealand and provide an alternative way of managing property.
But the nature of the trust relationship and its legal implications are not always well understood.
The Commission said it appeared a large number of this country’s trusts had limited property, such as just a family home.
It says trust legislation could be made more useful by including general principles of trust law and default positions that reflect the modern use of trusts.
Its proposals include making trustee duties clearer, providing a clear definition of what constitutes a trust, giving trustees more flexibility in their approach to investment, streamline the law and providing ways to reduce the reliance on the court to resolve administration issues, and addressing problems that can arise when a corporate is a trustee.
The Commission is also looking at how trusts are used in relationship property agreements because of concern about the potential for injustice. The Commission has raised several options including the amendment of relationship property legislation to alleviate trusts’ impact.
Final recommendations will be released next year. Submissions can be made until February.
Comments from our readers
No comments yet
Sign In / Register to add your comment
Coastal suburbs dominate Barfoot & Thompson’s latest list of Auckland’s top 20 hot growth spots, indicating a shift away from the traditional inner-city favourites.
Attention has been focused on the business risks seismic events can pose since last year’s Kaikoura earthquakes – and yet many people are still unclear about what they need to do.
Here is what Reserve Bank governor Graeme Wheeler had to say about interest rates today.