Many New Zealand families set up trusts years ago and have not looked at them since. Law and tax settings have moved on, so a periodic trust health check is sensible.
1. The tax picture
The trustee tax rate has been aligned with the top personal rate of 39% since 1 April 2024. This changes how income retained in the trust is taxed, so distribution decisions should be made together with your accountant.
2. The Trusts Act 2019
The Trusts Act 2019 replaced older, fragmented trust law. It sets out mandatory duties (which cannot be excluded) and default duties for trustees. Among them is a presumption that trustees must make basic trust information available to beneficiaries. A trust that was created before the Act may have a deed that no longer reflects current law.
3. Trustees
- Are all trustees still alive, willing, available and aware of their duties?
- Is there an independent trustee where one is needed?
- Are trustees New Zealand resident? A change in where the trust is controlled can have tax consequences.
4. Records and decision-making
Keep resolutions, accounts and meeting records up to date. Poor record-keeping, or a trust that is treated as personal property by the person who set it up, can lead a court to question whether the trust is genuine.
5. Life changes
Review the deed after a marriage, new relationship, separation, new grandchildren, a blended family or a significant change in anyone's financial position. Make sure your will, enduring powers of attorney and relationship property agreements work with the trust rather than against it.
6. Beneficiary disclosure
Decide how and when beneficiaries will be told about their status and what information they can access. Having a plan avoids disputes later.
What a health check involves
We review the deed, trustee composition, records and tax position; identify gaps; and recommend whether to update, restate or replace documents.
Last reviewed October 2026. General information only, not legal or tax advice.
