South Auckland Family Trust Lawyers – What It Means For You
South Auckland Family Trust Lawyers – The Effects Of The New Trust Law
The New Trusts Act of 2019 of New Zealand became law in January 202. It is a significant update to the existing 60-year-old Trustee Act of 1956. The new Act replaces the legislation of the previous one. The changes may require the help of one of the South Auckland family trust lawyers to give clarity to trustees or beneficiaries.
The main aim of the Act is to give better guidance and transparency to trustees and beneficiaries. This is achieved by clarifying and simplifying the obligations of Trustees and the main principles of the trust.
Key Changes To The Trust Legislation
There are many changes but amongst them are the following:
Trustees Mandatory Duties
Another big amendment is bringing in mandatory duties for trustees. The trustees must know the terms of the trust and the requirement to behave in accord with those terms. They must also be honest and act in good faith.
Trustees must also ensure that accurate records are kept. This includes all correspondence, administration, and financial reports.
More Disclosure Requirements
Notably, all beneficiaries must be given basic and essential details of the trust. This includes the identity of any and all trustees, the terms under which beneficiaries can receive benefits from the trust, and details of the assets of the trust.
These details can be as basic as informing the beneficiaries that they are indeed a beneficiary of the trust. Trustees must also provide their contact details.
Trustees also now need to provide yearly data about the trust which includes the balances and financial transactions.
Trust Management And Better Flexibility
Under the new Act, trustees have more flexibility in managing the affairs of the trust. They can appoint specialists like South Auckland family trust lawyers or investment managers to handle some or all of the trust management tasks.
The trustees are now able to change the terms of a trust under particular circumstances. This may be when it is no longer possible to act or provide benefits according to the original intentions.
Improved Rights Of Beneficiaries
Beneficiaries of a trust can now request key information about that trust. If the trustees do not provide the necessary information, the trustees can seek redress in the courts. If a trustee fails to operate as required, they can be removed and alternate trustees appointed.
Conclusion
Summing up the new Trusts Act, there have been some significant changes made. They affect both trustees and beneficiaries.
Better accountability of trustees, more transparency for beneficiaries, and more flexibility for the management of the trust are just a few key changes.
Trustees must make time to understand their new obligations and put in place plans to ensure that those requirements are carried out.
Beneficiaries ought to understand their rights under the new Act. They can then ensure that they have the information about the trust that they are entitled to.
If anyone, whether a trustee or a beneficiary of a trust, is uncertain of the roles, obligations, or rights, it would make sense to contact one of the South Auckland family trust lawyers. McVeagh Fleming in Manukau City has lawyers who can help.
You can find more details from their website. Click the link.