Changes Coming to Trust Law
The new Trusts Bill was introduced to New Zealand Parliament in late 2017 and is expected to pass into law in late 2019, with major implications likely for trustees.
The major difference, which may upset many clients who have a trust, is that under the new rules trustees must inform every beneficiary that they are a beneficiary of a trust and they have a right to trust information.
This means ALL beneficiaries will need to be provided with a copy of the trust deed and the annual financial statements.
We believe these legislation changes, along with the Anti Money Laundering legislation, will make trusts very unattractive as a trading entity or an asset protection entity going forward. It is becoming more expensive to have a Trust and these changes will make it more so.
If you have a trust, it may be time to consider whether you really need it or if your asset protection can be achieved through some other means. For succession purposes, a Company structure can be just as effective.
Our Directors, Chrstine Craig and Shannon Harnett, are attending a Trust Law seminar shortly and we will update you via the September 2019 edition of The Rural Rag.
As a farmer, Christine understands our business and how farmers and growers operate.
We use Rural Accountants to provide a full accounting service to an orcharding partnership which operates a number of orchards with a wide spread of varieties and management systems. Rural Accountants are always timely and accurate, and their annual financial accounts are extremely easy to understand and very grower-friendly.
Rural Accountants is a real asset to our business.
The team at Rural Accountants pretty much manage all our administrative tasks for the group including payroll and tax planning, ensuring we don’t pay any more than necessary. They are at the forefront of technology and have helped us get up and running with Xero and Figured which is much more efficient than the way we used to work.
Christine is very knowledgeable, great to deal with and knows our business well. She is also a sheep & beef farmer so knows the industry really well and understands our needs.
Rural Accountants keeps us on track through strategic and forward planning meetings throughout the year. Christine knows our business inside out so she can deal with our questions instantly.