When did family trust elections start?
Released April 2004. The Government introduced the concept of Family Trust Elections (“FTE”) in 1995 with the introduction of the Trust Loss provisions.
What are the changes to family trusts in NZ?
The new Trusts Act 2019 (the Act) will take effect on 30 January 2021. The Act updates and improves the law governing trusts for the first time in more than 60 years. It will apply to all existing trusts in New Zealand, as well as any trust created on or after 30 January 2021.
Is it worth having a family trust in NZ?
A family trust may be useful to: Protect selected assets against claims and creditors – for example, to protect a family home from the potential failure of a business venture. Set aside money for special reasons, such as a child or grandchild’s education.
Is it possible for a trust to continue indefinitely?
A: Unless the trust terms state otherwise, a trust cannot continue indefinitely. The trustee is required to follow the terms of the trust, which may require that the house be sold or distributed to the beneficiaries. If the trustee fails to do this,…
What should the name of the trust be?
Mr. and Mrs. Jones’ trust might say something like “the share described herein shall be set aside into the Jones Family Trust Marital Sub-Trust” or “the Jones Family Decedent’s Trust.” If the document names the new (or sub-) trust, use that name.
What is the duration of a living trust?
Also known as a living trust, this trust has a duration that is determined at the time of the trust’s creation and can entail the distribution of assets to the beneficiary during or after the trustor’s lifetime.
When does a living trust become an irrevocable trust?
If the trustor creates a living irrevocable trust, the trustor essentially reduces the value of the estate, (since all rights to the assets have been relinquished), and would thus reduce the taxes on the estate. A living trust is typically established as a revocable trust and essentially becomes an irrevocable trust after the death of the trustor.
When does trust a become part of the family group?
The FTE specifies the same individual named in the FTE of Trust A resulting in Trust B becoming part of the specified individual’s family group. As Trust B has a FTE in force from 1 July 2013, it is treated as having been a member of the family group in relation to the $50,000 distribution made by the trustee of Trust A in the 2014–15 income year.
What are the different types of family trusts?
These two types are: Revocable Trust. This type of trust allows the grantor to cancel, or revoke, the trust. Irrevocable Trust. This type of trust precludes the grantor from getting the trust assets back, unless the trustee and the beneficiaries agree.
Can a family trust be a living trust?
A family trust can be either a revocable trust or an irrevocable trust; it can be both a living trust and an irrevocable trust and it can be both a living trust and a revocable trust. A revocable family trust can accomplish three basic things: Avoid probate. This avoids the time and expense of a court process.
Can a family trust benefit from a holding period?
The holding period rules regulating access to franking credits – the holding period rules allow the trustee and beneficiaries of a family trust that receives a franked dividend or franked non-share dividend to benefit from a franking credit concession.