Should I have a trust?
There are approximately 200,000 trusts in New Zealand. But should you have one? And if you should how do you go about getting one?
There are several primary reasons to consider a family trust as part of your move to New Zealand:
1. Asset protection from liability claims, unexpected business debts or financial disaster
2. Tax minimisation in certain circumstances, including preparation for possible capital gains or death taxes
3. Reducing the chance of relationship property claims by future partners
4. As a mechanism for estate planning, that is, providing for your family after you're gone and ensuring your wishes are carried out the way
5. Maintaining confidentiality about your financial affairs
Establishing a family trust
When establishing a trust the “settler” agrees on something called a trust deed with the trustees (this is a legal document outlining how the trust should be managed) and then transfers the ownership of assets to the trust.
The trust deed will typically outline how the assets are to be used for the benefit of certain people known as beneficiaries.
Trustees can be the settler themselves, or anyone else, by themselves or in combination with others.
Trusts are very technical structures, and professional advice is essential. This is just one of the areas in which Jones Law can help you with your move to New Zealand.
What we do?
Jones Law can assist you with your pre-migration tax affairs, business structuring and acquisitions, general legal and estate planning needs. The partners at Jones Law are experienced with assisting new migrants with structuring their legal affairs prior to and upon arrival in New Zealand. We also have a broad network in New Zealand and can assist in identifying target business acquisitions.
New migrants to New Zealand and New Zealanders returning after an absence of 10 years or more may be able to benefit from the transitional resident tax exemption, which applies to foreign sourced income derived by new migrants for a period of up to four years after you first become resident in New Zealand. Check that you qualify and make sure you know how to make the most of this exemption, before arriving in New Zealand. This exemption could assist you in the manner in which you dispose of assets in your home country, so take early advice to maximize your position.
For more information contact Kevin Jones on +64 9 486 0950 or +64 21 598 862.