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  • Dino Montepara

Core Trust Documents



Since coming into effect on 30 January 2021, the Trusts Act 2019 has impacted trustees and beneficiaries. The Act has provides for greater accessibility and offers trustees improved guidance to achieve this. Moreover, beneficiaries now have a better ability to hold trustees to account by ensuring that beneficiaries have enough information to enforce the terms of the trust. One way the Act does this is by creating an obligation for trustees to retain core trust documents. Core trust documents are identified in the Act as:


  • the trust deed and any other document that contains terms of the trust;

  • any variations made to the terms of the trust;

  • records of the trust property that identify assets, liabilities, income and expenses of the trust;

  • records of trustee decisions;

  • written contracts;

  • accounting records and financial statements;

  • documents of appointment, removal and discharge of trustees;

  • memorandum of wishes; and

  • any other documents necessary for the administration of the trust.


Every trustee must keep a copy of the trust deed and any variations made to the terms of the trust. The other core documents may be kept by one of the trustees, provided that the trustee will make each document available to other trustees upon request.


A trustee must keep core trust documents for the duration of their trusteeship. When they cease to be a trustee, they must give any core trust documents they hold to the new or continuing trustee of the trust. Trustees should take stock of what core documents they currently hold and take steps to fill in any gaps. Trustees may also wish to take this opportunity to re-familiarise themselves with the trust deed and terms of the trust.


For further advice and assistance with your trusts feel free to contact Kemp Barristers & Solicitors at info@kempsolicitors.co.nz or 412-6000.

 


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