Pearse Trust Blog



CRS and Trusts

Posted by Pearse Trust on Wednesday, Jul 20, 2016

What is CRS?

The OECD’s new Common Reporting Standard mandates that financial institutions must report information to their own domestic authorities relating to account holders that are tax resident in any of the over 90 jurisdictions, that have signed agreements to implement Common Reporting Standard into domestic legislation.  

In addition to the CRS, the OECD has published the CRS Implementation Handbook and also maintains and regularly updates a list of CRS-related Frequently Asked Questions.

For the earliest adopters, which include Ireland, Mexico, and the UK, the Common Reporting Standard commenced on 1 January 2016. New Zealand, Panama and Switzerland will start to report in 2018.  The US is not a party to the CRS. 

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Tags: Tax, Economy, Trusts

Momentous Decisions - A Must Read For Trustees

Posted by Pearse Trust on Wednesday, Mar 02, 2016

A trend has emerged in recent years whereby trustees seek court approval when faced with difficult or momentous decisions.  It is clear that when making an application to the court the relevant jurisdiction’s processes and procedures must be followed. This blog examines the impact that the trustee’s actions, or lack of action, when making a momentous decision can have on the court’s ruling.

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Tags: Legal, Trusts

Increased Trustee Responsibility In UK Charities

Posted by Pearse Trust on Wednesday, Jan 27, 2016

Increased_Trustee_Responsibility_In_UK_Charities.jpgThe UK Charities sector suffered from bad press during 2015 amidst widespread allegations of inappropriate fundraising methods and accusations of data protection breaches. The shortcomings of the charities sector were trumped by an even bigger blow when children’s charity ‘Kids Company’ was closed due to allegations of financial mismanagement following reports that public funding was being spent on accommodation for its clients when the charity was in fact getting the accommodation for free; as well as an ongoing investigation by the Metropolitan Police.

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Tags: United Kingdom, Trusts, Social Responsibility

7 Reasons To Set Up A Family Trust

Posted by Pearse Trust on Wednesday, Dec 09, 2015

What is a Family Trust?

A family trust is a trust established specifically for the benefit of members of a particular family.  The purpose of creating a family trust is to protect and manage family assets for current and / or future generations.

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Tags: Legal, Trusts

2 Methods Of Settling A Trust

Posted by Pearse Trust on Wednesday, Nov 11, 2015

There are several types of trusts and also several ways to settle them. Trusts can be settled verbally or in writing.  In this blog post, we will examine two methods of settling a trust in writing.

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Tags: Trusts

Purpose Trusts – When Are They Valid?

Posted by Pearse Trust on Monday, Oct 05, 2015

A purpose trust is a trust which has no beneficiaries and is instead established for a specified purpose. Under common law principles, a purpose trust will be declared void and struck down. This is because only legal persons are capable of possessing rights that attach to a trust, and the lack of beneficiaries of a purpose trust makes it difficult to determine who might be able to enforce equitable rights against the trustees.

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Tags: Trusts

Why The New Zealand Trust?

Posted by Pearse Trust on Monday, Sep 28, 2015

New Zealand comprises of two islands, it is very much a part of the ‘onshore’ world.  As a respected OECD and FATF member, it is in the unique position of being a reputable onshore jurisdiction, whilst also offering various tax efficient vehicles, which are increasingly utilised for international tax planning.

The challenges faced by traditional offshore jurisdictions, combined with New Zealand’s tax laws and international reputation have made it a very attractive low-tax jurisdiction.

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Tags: New Zealand, Trusts

Creating A Trust - What Are The Requirements?

Posted by Pearse Trust on Monday, Sep 21, 2015

A trust is a private legal arrangement whereby a settlor entrusts specified property and the legal ownership of it to another, known as the trustee. The trustee holds the property for the benefit of one or more beneficiaries. The trustee has a fiduciary obligation to act in the best interests of the beneficiaries and to be diligent in discharging the trust duties. The requirements for creating a trust are as set out below.

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Tags: Trusts

Using An Inter-Vivos Trust For Succession Planning

Posted by Pearse Trust on Monday, Sep 07, 2015


The management of a deceased’s affairs can be a contentious issue. The way in which a deceased’s estate is distributed may divide a family, and disgruntled heirs may even feel compelled to contest a will in Court.

For a person seeking certainty that their affairs will be dealt with efficiently and in a manner that best reflects their personal wishes, they may wish to consider the use of an inter-vivos, or ‘living’ trust for succession planning purposes. This blog will provide a brief overview of the advantages of using an inter-vivos trust for succession or estate planning, and compare it with a testamentary trust.

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Tags: Legal, Trusts

New Zealand Corporate Trustees

Posted by Pearse Trust on Wednesday, Jul 08, 2015


As discussed in a previous blog post, New Zealand is a popular jurisdiction for settlement or re-domiciliation of a Trust. This is because, when structured correctly, the New Zealand Foreign Trust will not be subject to taxation.

In order to avail of optimum tax benefits, a New Zealand resident trustee referred to as a 'resident foreign trustee’ must be appointed. The resident foreign trustee is typically a New Zealand corporate trustee. Foreign-sourced income derived by a New Zealand resident trustee is exempt from income tax in New Zealand provided the settlor is not resident in New Zealand.

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Tags: New Zealand, Trusts