The Minister of Justice has released a draft Trusts Bill for consultation. The proposed reforms are based on recommendations made by the Law Commission in its 2013 Report Review of the Law of Trusts: A Trusts Act for New Zealand.
The Minister’s press release states that the “draft Trusts Bill updates and improves the Trustee Act 1956, marking the first significant change in 60 years.
The proposed improvements include:
- making it easier for people to understand how to appropriately use trusts to manage their affairs
- clear mandatory and default trustee duties so people know what their obligations are if they’re involved in managing a trust
- requirements for trustees to manage and provide information to beneficiaries
- flexible trustee powers and updated rules
- clear rules for when people make changes to a trust or wind them up
- more options for removing and appointing trustees without having to go to court while also preserving people’s ability to ask the courts to intervene to resolve disputes".
The Ministry of Justice has also published a consultation document entitled A new Trusts Act for New Zealand – exposure draft of the Trusts Bill
. This document “explains the policy objectives that the draft Bill’s provisions are based on” and asks questions to assist with feedback on the draft Bill.
A copy of the draft Trusts Bill
and consultation document
can be reviewed online.
Feedback can be given online or by emailing or posting your submission to the Ministry of Justice by 5pm, Wednesday 21 December 2016. Click here
If you wish to obtain any further information, please contact your usual TGT Legal adviser.