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.
Pearse Trust Blog
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.Read More
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.Read More
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.Read More
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.Read More
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.Read More
In a previous blog we examined the role and powers of trust protectors. We will now examine the relationship between protectors and trustees.
In recent years, settlors are increasingly appointing protectors on the settlement of trusts. There are a number of reasons for such an appointment:
- They may have yet to build a relationship with the proposed trustee;
- They wish to safeguard their wishes on settlement of the trust; and
- To oversee the proper administration of the trust.
This blog examines the powers that settlors and protectors may wish to retain over assets vested in a trust. However, as most trust professionals are aware, the extensive transfer of powers to a settlor or a protector has a downside. To give substance to a trust, it is essential that the trustee is able to perform its fiduciary duties, honestly and in good faith for the benefit of the beneficiaries.
Case Of Briggs & Ors v Gleeds
This blog highlights the importance of ensuring deeds are validly executed. The recent case of Briggs & Ors v Gleeds (Head Office) & Ors  EWHC 1178 (Ch) (15 April 2014) deals with the consequences of the defective execution of 30 salary pension scheme documents over a period of almost 20 years.
This blog looks at the recent Bermuda case Re A Trust (2013) SC (Bda) 16 Civ. In this case, the Supreme Court of Bermuda considered the validity and effect of an ‘information control clause’ which provided the trust protector with the right to prevent disclosure of trust information by the trustee to beneficiaries.