The New Zealand law Commission is charged with ensuring that New Zealand's law are reviewed regularly to ensure that we operate only with the most up to date law reflecting New Zealand's position as a modern first world democracy.
Given that our primary trust law is the Trustee Act 1956, the law commission is currently reviewing the law relating to trusts. The review will be carried out in three stages:
- Stage One of the review will consider the Trustee Act 1956 and the Perpetuities Act 1964.
- Stage Two will consider the Charitable Trusts Act 1957.
- Stage Three will consider the trustee companies legislation.
The Commission will consult on Stage One by way of a series of short issue papers on:
- The nature and use of trusts in New Zealand.
- The Perpetuities Act 1964 and the variation and resettlement of trusts on which Trustees Executors has made a number of submissions providing analysis of the perpetuity rules in New Zealand relative to other jurisdictions.
- Trustees' duties, liabilities and beneficiaries rights.
- The office of trustee and trust administration.
- Trustee's powers.
- Any remaining issues, including trading trusts, the registration of trusts and creditor protection.
The Commission will then release a final report on Stage One which will include draft legislation.
With permission this excerpt was written by:
Ross Hanning
Head of Offshore Client Services
Trustees Executors Limited
