The underlying purpose of the Social Securities Act 1964 is to ensure that financial support is available to people who require it. The availability of this support is subject to means testing, and the Act requires that "where appropriate they should use resources available to them before seeking financial support under this Act". These resources may include assets held in trust.
In February 2017 the New Zealand Parliament completed its third reading of the Taxation (Business Tax, Exchange of Information and Remedial Matters) Bill which is due to come into law soon. The Bill introduces new laws for the administration of New Zealand foreign trusts. The reforms are based on the recommendations of the Shewan Inquiry which was set up as a result of the Mossack Fonseca data leak in April 2016 (the ‘Panama Papers’). The report raised concerns about the need for disclosure rules relating to foreign trusts registered around the world. The New Zealand Government has decided to enact the new law to ensure New Zealand's reputation is maintained.
Your will is one of the most important documents you will sign in your life. It has a profound effect on the legacy you will leave your loved ones.
There are many reasons for creating a trust, and our team of trust experts briefly cover them here.
THE PROPERTY (RELATIONSHIPS) ACT 1976 ("THE ACT")
The Act applies to all marriages, civil unions and de facto relationships. The Act deals with the division of property upon the end of a relationship whether that be through death or separation.
Under the Act property is divided into two categories:
It is estimated that 60,000 New Zealanders are afflicted by dementia. However, in the next 35 years it is projected this is going to increase threefold to more than 150,000. One of the issues that arises when somebody is diagnosed as being incapacitated, whether by dementia or otherwise, is “who has control over their property affairs?” There are two choices of formal arrangements which are provided for by law. These are:
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