A recent article published by stuff.co.nz highlights that many family trusts established in the 1980s and 1990s may no longer be needed due to changes in circumstances and upcoming changes in Trust Law. It is estimated that there are approximately 500,000 Trusts in New Zealand.
Trust Partner, Brooke Courtney, agrees that many existing family trusts have not been managed correctly and are probably no longer needed. Each family trust has to be reviewed in these circumstances, and Brooke suggests that many of our clients should be considering whether a family trust going forward is the best option.
Any decision to wind up a trust will need to be considered carefully and a cost benefit analysis for settlors should be undertaken. Our trust law team can help you understand your position.