Trust Review 
- Identification of any compliance issues
- Ensuring your Trust would pass a Government audit
- Guidance in getting your Trust “ back on track” if needed
- Peace of mind gained by understanding and controlling your Trust
Why do I need my Trust Reviewed?
It is estimated that currently there are over 200,000 Trusts in New Zealand.
Experts believe over 75% of these could be successfully challenged.
In general people settle Trusts to protect important family assets against loss through matters such as Business Risk, Legal Actions or Property Relationship Claims. If any of these risks were to eventuate they would most probably do so through a court action which may involve your Trust.
Equally if you apply for a Rest Home Subsidy your Trust records could be open to scrutiny by a Government body.
In circumstances such as this where your records came under close scrutiny it would be too late to fix any mistakes or lapses made by the Trustees. The last thing you would want is for your Trust to be overturned because you had left everything to your advisors, or you simply didn’t know what to do.
If a Trust is to be overturned it generally has nothing to do with the original Trust documents you signed and everything to do with what you did or didn’t do as a Trustee.
As a Trustee you have to know what is going on in your Trust and be seen to do so through keeping proper records.
The review that New Zealand Trustee Services Limited provides would be prepared by a Trust professional with over thirty years experience specialising in Trust Management.
Why should I get my Trust Reviewed?
The correct question should be...Why shouldnʼt you?
Your worst risk in asking for a Trust Review is receiving a report to say “all is in order”. Past experience would indicate that this scenario would be unlikely. The risk in not having your Trust reviewed may be losing your house - the cost of the review may be well worth it for peace of mind.
Simple Steps to Peace of Mind
What Information Should I Bring When I Review My Trust?
Each Trust should have its own Minute Book by which we mean a central record for the Trust that contains copies of:
- All Deeds
- Correspondence
- Accounts
- Tax Records
- Trustee minutes for all Trustee decisions.
If you do not have a Minute Book or don’t know where it is kept then you should definitely have your Trust reviewed. If your Trust Advisor cannot produce the Minute Book then the same applies.
We would then need:
- Trust Deed(s)
- Detail of Trust Assets
- Gifting Documents and
- Wills
As well as the above, bring any papers you can find regarding your Trust and we will guide you from there.
What Will the Review Tell Me?
A Trust Review will normally run between 12 - 15 pages. It contains an analysis of the initial Trust Deeds and the Assets and Liabilities that comprise your Trust.
We will then offer an in-depth review of all the documents that we would expect to be present as opposed to what we could find.
Based on the documents reviewed we will give recommendations in five areas:
1. Initial Documents Required
2. Documents Recording Sale of Assets
3. Other Asset Protection Vehicles
4. Minute Book Administration
5. Subsequent Gifting-Preparation and Filing
The recommendations will point out any issues we have identified with your Trust Documents and how to manage you Trust more efficiently.
We will look at the administration of the Trust as if we were a solicitor acting in a legal action against you or an IRD inspector. We will point out any areas where we believe the administration has been deficient.
Finally, we will give you an estimate for the costs of preparing the documentation for fixing any errors or omissions identified in the review and to bring your Trust records up to date.