TRUST GUARD REVIEW
SIMPLE STEPS TO PEACE OF MIND
TrustGuard is a unique service which reviews the current situation of a Trust and makes recommendations to help ensure the Trust delivers on specified objectives.
This service is for those clients who have a Trust created. Where New Zealand Trustee Services is not a Trustee nor has New Zealand Trustee Services had any involvement with the administration of the Trust to date.
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.
A visual process guide to ensure the collection of all relevant information and documentation critical to the Trust review.
The TrustGuard process will result in specific recommendations for each client which are designed to assist them in the administration of their Trust. Based on the client’s documentation, recommendations may include;
- Adjustment or preparation of documents to bring the administration of the Trust up to our standards
- Based on the reasons why the Trust was created versus the present requirements of the clients, we may recommend the winding up of the Trust
- We may suggest the resettlement of the assets to a new Trust, thus winding up the old Trust and ensuring that the new Trust receives all previously held assets, and that all gifting and capital gains are still protected
- Take over administration, providing no major issues are discovered
- Correct the administration where possible and take over the administration
- Resettle assets into a new Trust and wind up the old Trust
TrustGuard Review Form
A TrustGuard Review Form 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 carefully examine the administration of the Trust as if we were a solicitor or IRD inspector acting in a legal action against your Trust. 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 resolving any issues identified by the review.
The TrustGuard Review Form enables a detailed review of the current situation of a Trust and makes recommendations to help the Trust develop and achieve specified objectives. It is designed to establish the process for creating a successful, legally compliant Trust and covers a range of topics including;
Information for Consideration
- Trust Deed
- Role of the Professional Trustee
- Beneficiaries to the Trust, e.g.
– The settlors to the Trust;
– The children of the settlors;
– The grandchildren of the settlors;
– Individuals related to the settlors by blood or adoption only;
– Trusts that any discretionary beneficiary is a beneficiary of; and,
- Assets held under Trust
- Clawback under insolvency legislation
- The Will
- Recording clients intentions for the Trust in a Memorandum of Wishes
- Enduring Power of Attorney (EPA)
- for Property
- Enduring Power of Attorney (EPA)
- for Personal Care & Welfare
Objectives of Settlor(s) and Beneficiaries
- Name of Trust
- Contact details
- Name of settlor(s)
- Name of Trustee(s)
- Date Trust was established, etc.
Trust’s Current Financial Situation
General Observations of the Trust Documents
- Trust Deed, etc.
Trust guard Checklist
- Initial review of documents,
- Assets, minute book etc.
Estimate of Costs