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Trusts are a powerful tool for safeguarding the financial well-being of your vulnerable family members. Whether you have loved ones with disabilities, those in need of long-term care, or other special circumstances, establishing a trust can provide the necessary protection and support. Here's how trusts can help protect your vulnerable beneficiaries: What Is a Trust? A Trust is a legal entity where one party, known as the trustee, holds and manages assets on behalf of another party, known as the beneficiary. Trusts can be individually tailored to meet specific needs and provide a range of benefits for your vulnerable family members. Types of Trusts for Vulnerable Beneficiaries There are several types of trusts designed to protect vulnerable beneficiaries, including: Special Needs Trusts: These trusts are specifically created to benefit individuals with disabilities without affecting their eligibility for government benefits such as New Zealand Superannuation and the Disability Allowance. Special needs trusts ensure that the beneficiary's financial needs are met without jeopardising their access to essential services and support. Discretionary Trusts: In a discretionary trust, the trustee has the authority to decide how and when to distribute trust assets to the beneficiary. This type of trust is particularly useful for beneficiaries who may not be able to manage their own finances due to age, illness, or other factors. The trustee can make decisions based on the beneficiary's needs and circumstances. Protective Trusts: Protective trusts are designed to shield assets from creditors or potential legal claims. These trusts can be particularly beneficial for beneficiaries who may be at risk of financial exploitation or who have a history of financial mismanagement. Benefits of Trusts for Vulnerable Beneficiaries Establishing a trust for a vulnerable beneficiary offers several advantages: Financial security: Trusts provide a structured way to manage and distribute assets, ensuring that the beneficiary's financial needs are met over the long term. Access to Government benefits: Special needs trusts, in particular, allow beneficiaries to receive financial support without affecting their eligibility for government benefits. This ensures that they have access to essential services and support. Protection from exploitation: Trusts can protect vulnerable beneficiaries from financial exploitation by placing assets under the control of a trusted trustee. This reduces the risk of beneficiaries being taken advantage of or mismanaging their finances.  Customised support: Trusts can be tailored to meet the specific needs and circumstances of the beneficiary. This allows for a personalised approach to asset management and distribution. Considerations for setting up a Trust When establishing a trust for a vulnerable beneficiary, it's important to consider the following: Choosing the right Trustee(s): The trustee plays a crucial role in managing the trust and making decisions on behalf of the beneficiary. It is important to choose someone who is trustworthy, knowledgeable, and capable of handling the responsibilities. Drafting the Trust Deed: The Trust Deed should clearly outline the terms and conditions of the trust, including the extent of the Trustee's powers and responsibilities, the beneficiary's rights, and the distribution of assets. Working with a legal professional can ensure that the document is properly drafted and legally sound. Regular Reviews: Trusts should be reviewed regularly to ensure that they continue to meet the beneficiary's needs and comply with any changes in laws or regulations. This helps to ensure that the trust remains effective and relevant over time. Trusts are a valuable tool for protecting your vulnerable beneficiaries and ensuring their financial well-being. By providing a structured and secure way to manage and distribute assets, trusts offer peace of mind for both beneficiaries and their families. It is important to speak with a trusted legal professional to ensure that a Trust is the most effective vehicle for protection (ie compared to Enduring Powers of Attorney or other legal arrangements). If you have a vulnerable family member in need of financial protection, consider establishing a trust to safeguard their future. Contact us today to discuss how we can help you set up a trust that meets your family's unique needs.

Trusts are a valuable tool in estate planning, asset protection, and financial management. However, circumstances may change, and you might need to amend or wind up a trust. Before taking any action, it's important to understand the considerations and implications involved. Understanding the Winding Up of a Trust: Winding up a trust means ending it entirely, nullifying its existence, and distributing the assets to the beneficiaries of the trust. Here's what you should know: Type of Trust: The ability to wind up a trust depends on the powers provided within its Trust Deed. Generally, revocable trusts can be changed or wound up by the Settlor (or other party nominated in the trust deed) at any time, as long as they are mentally competent. Fixed trusts (or irrevocable trusts) cannot be easily wound up or amended without the consent of the beneficiaries and sometimes a court order. Reasons for winding up: Common reasons for winding up a trust include changes in personal circumstances, such as marriage, divorce, or significant financial changes. If the trust no longer serves its intended purpose, winding it up may also be necessary. Process: Winding up a trust typically involves drafting a formal revocation deed, which must be signed and notarised (this means a Notary Public, a type of lawyer, needs to sign). It is advisable to consult with a legal professional to ensure it is appropriate to wind up the trust and that all legal requirements are met. Considerations for Amending a Trust Amending a trust means making changes to the terms or provisions of a trust without completely winding the trust up. Here are some key considerations: Identify the changes: Before amending a trust, clearly identify the specific changes you want to make. This could include altering beneficiaries, changing trustees, or modifying distribution terms. Consultation with Trustees: Communicate with the trustees about the proposed amendments. Trustees play a crucial role in managing the trust and must be informed about any significant changes. Trustees must reach a unanimous decision together, before the Trust can be amended. Legal compliance: Ensure that the amendments comply with all relevant legislation and the terms and powers outlined in the original Trust Deed. Consulting with a legal professional is highly recommended to avoid any undesired legal consequences. Formal documentation: Like winding up a trust, amending a trust requires formal documentation. A Trust Amendment Deed must be drafted, signed, and notarised. In some cases, multiple amendments may be consolidated into a single restatement of the trust. Potential Implications Both winding up and amending a trust come with potential implications that need careful consideration: Tax consequences: Changes to a trust can have tax implications, particularly for fixed trusts. It is essential to consult with a tax advisor to understand the potential impact on your tax situation. Legal challenges: Improperly executed amendments or revocations can lead to legal challenges from beneficiaries or other interested parties. Ensuring that all legal requirements are met and that the changes are clearly documented can help mitigate these risks. Asset protection: Amending or winding up a trust may impact the level of asset protection the trust provides. For example, winding up a trust could expose assets to creditors or legal claims. Consider the implications for your overall asset protection strategy before making any changes. Winding up or amending a trust is a significant decision that requires careful consideration and professional guidance. Understanding the type of trust, the reasons for change, and the potential implications is essential. Consulting with legal and tax professionals can help ensure that the process is carried out smoothly and that your trust continues to serve its intended purpose effectively. If you are considering winding up or amending a trust, take a thoughtful and informed approach. By doing so, you can ensure that your trust continues to provide the desired benefits and aligns with your current circumstances and goals. We have the expertise to guide you through this process. Contact us today to discuss your options and ensure your trust is serving your best interests.

How an Independent Professional Trustee Could be of Assistance

Managing debt recovery can be a challenging task, but understanding the process can help you take control and ensure the successful collection of unpaid debts. This guide provides essential information on how to effectively manage and recover debts from clients or businesses. Understanding Debt Recovery Debt recovery is the process of collecting unpaid debts from individuals or businesses. It involves various steps, from initial communication with the debtor to legal action if necessary. The aim is to tackle debts as soon as possible before they become unmanageable for both your business and the debtor. Steps to Take for Debt Recovery Assess Your Debt Situation: Begin by assessing your outstanding debts. Make a list of all the debts owed to your business, including the amount owed, the debtor, and the due dates. This will give you a clear picture of your receivables and help you prioritise which debts to address first. Communicate with Debtors: Open communication with your debtors is crucial. Contact them to discuss the outstanding debt and explore possible solutions. Early intervention is usually preferable to prevent problem debts from escalating to a level that impacts your business. Create a Recovery Plan: Develop a realistic debt recovery plan based on your business goals and financial situation. Prioritise high-value debts and allocate resources to recover these debts first. Stick to your plan and follow up consistently to ensure timely recovery. Seek Professional Advice: If you're struggling to recover debts, consider seeking professional advice. Debt recovery agencies and legal professionals can provide valuable guidance and help you create a tailored debt recovery plan. They can also negotiate with debtors on your behalf. Explore Legal Options: Legal action can help recover the owed amount, but it's important to seek legal advice before proceeding to minimise the chances of spending time and money pursuing unrecoverable debts. Debt recovery can be tough, but with the right steps, you can take control of your receivables. Assess your debt situation, communicate with debtors, create a recovery plan, and seek professional advice if needed. For more information, you can also check out the Government's debt management website: https://debtmanagement.treasury.govt.nz/

Charities play a crucial role in making a positive impact in our communities, and the laws that govern them shape how effectively they can operate. If you are involved with a charity, it's important to stay informed about recent changes in the law. The ‘rulebook’ has been updated. The Charities Act 2005 (the Act) is the primary legislation that regulates how charities function in New Zealand. To maintain charitable status, officers of a charity must ensure compliance with the Act not only at the time of registration but continuously, including adhering to any changes in the law. The Act has been amended by the Charities Amendment Act 2023, which came into force in July last year, with further changes which took effect in July 2024. Here are some key updates: Expanded definition of officer Officers of a charity are responsible for ensuring the charity's purpose is fulfilled and its obligations are met. The definition of who qualifies as an officer has been broadened to include: Anyone (including a corporate body) in a position within the charity who can significantly influence major decisions. This applies regardless of the type of entity (e.g., trust, company, society) and the individual's title. The focus is on their influence, not their title. Officers now include trustees, members of the governing body, and roles like CEO, CFO, and general manager if they have substantial influence. Additional disqualification criteria now include convictions related to financing terrorism. The minimum age for officers has been lowered to 16, provided at least one officer is 18 or older. Governance review requirement Charities must now review their governance procedures at least every three years. This review should assess whether the deed, constitution, or rules are fit for purpose, help achieve the charity's goals, and comply with the Act. Key questions to consider include: Is the charitable purpose clear and still relevant? Are the current activities aligned with the purpose? Do the rules need updating to meet changing needs? Are conflicts of interest being managed appropriately? The review process is self-driven and can vary for each charity, but it must be documented.  Consequences of serious wrongdoing Previously, serious wrongdoing by a charity or its officers led to deregistration. Now, the Charities Registration Board can disqualify the relevant officer without deregistering the charity. The definition of serious wrongdoing has been narrowed to include only offences punishable by imprisonment for two years or more, but still covers unlawful or corrupt use of funds and grossly negligent actions. Reporting and accounting standards Reporting requirements have been streamlined for very small charities, while larger charities face more rigorous obligations. All charities must file an annual return with Charities Services, including financial statements prepared according to generally accepted accounting practice. The External Reporting Board (XRB) sets these standards. Tier 4 charities (annual expenses under $140,000) can use cash-based accounting. Tier 3 charities (annual expenses between $140,000 and $2,000,000) use accrual-based accounting. Larger charities (expenses over $2 million) continue to follow existing standards. Changes effective from 5 July 2024 Further amendments came into effect on 5 July 2024, which aimed to streamline the appeals process, making it more accessible and less costly for charities to challenge decisions by the Charities Registration Board: Charities can appeal to the Taxation Review Authority before the High Court and can self-represent to save on legal costs. The scope of appealable decisions will expand to include significant decisions by Charities Services. The timeframe for lodging an appeal will extend to two months. Representatives of a charity can appear in person to speak to the Board on appeals. Staying informed about these changes is essential for ensuring your charity remains compliant and continues to make a positive impact in the community. If you have any questions or need assistance, consider seeking professional advice to navigate these updates effectively.

As we plan for the next 12 months, it's a good time to remember the importance of keeping your family documents up to date. In today's busy world, it's easy to forget this task, but having accurate and current records is really important for your family's security and peace of mind. Here are some key reasons to regularly review and update your family documents: Keeping your family documents up to date ensures legal protection. Important documents like wills, powers of attorney, and healthcare directives need to reflect your current wishes and circumstances. An outdated will might not account for new family members or changes in your financial situation, potentially leading to disputes and legal complications. Accurate and current financial documents are essential for managing your family's assets and liabilities. This includes updating beneficiary designations on insurance policies, retirement accounts, and investment portfolios. Keeping these documents up-to-date ensures that your assets are distributed according to your wishes and helps avoid unnecessary taxes and legal fees. In an emergency, having up-to-date documents can make a significant difference. This includes having current contact information, medical records, and emergency plans. For instance, if a family member has a medical emergency, having their latest medical records and healthcare directives readily available can ensure they receive the appropriate care quickly, relieving some of the pressure during a stressful time. Keeping your family documents organised and up to date makes it easier for you and your loved ones to access important information when needed. This is particularly important in times of stress or grief, such as after the loss of a family member. Having all necessary documents in order can simplify the process of settling estates and managing affairs. Outdated documents can lead to misunderstandings and disputes among family members. By regularly updating your documents, you can ensure that your intentions are clear and reduce the risk of misinterpretation. This helps maintain family harmony and prevents conflicts during difficult times. Life is full of changes, from marriages and divorces to the birth of children and changes in financial status. Keeping your family documents up to date allows you to adapt to these changes and ensure that your records accurately reflect your current situation. This can include updating your will, changing beneficiaries, or revising your power of attorney. Keeping your family documents up to date is essential. Regularly reviewing and updating these documents can provide peace of mind and ensure that your family's needs are met in any situation. Make it a priority to keep your family documents current and organised, and you'll be better prepared for whatever situation may arise.

Dealing with a relationship breakdown can be tough and emotional. Whether it's a marriage, de facto relationship, or civil union, it's important to know your legal rights and responsibilities. Here are some important steps to you need to consider: Get legal advice early: Talk to a family lawyer to learn about your rights and responsibilities. They can help you with property division, child custody, and spousal maintenance, ensuring you make well-informed decisions. Know how property is divided: In New Zealand, the Property (Relationships) Act 1976 generally splits relationship property equally. This covers assets like the family home, vehicles, and savings acquired during the relationship. A lawyer can help you understand any exceptions and navigate the complexities. Think about child custody and support: The Care of Children Act 2004 focuses on the child's best interests when deciding custody arrangements. Aim for an agreement that keeps the child's relationship with both parents strong. The IRD can help with calculating and managing child support payments. Consider spousal maintenance: One partner might be eligible for financial support. Factors such as the length of the relationship, standard of living, and earning capacity are taken into account. A lawyer can help you understand your rights and responsibilities. Look into mediation and dispute resolution: Mediation uses a neutral third party to help both sides reach an agreement. It's often less stressful and cheaper than going to court. The Family Dispute Resolution (FDR) service can help with disputes about parenting and guardianship. Update your legal documents : After speaking with a lawyer, make sure to update your will, power of attorneys, property titles, insurance policies, trusts, and other legal agreements to match your current wishes and situation. Take care of your emotional health : It's crucial to look after your emotional well-being. Reach out to friends, family, or a professional counsellor for support. Taking care of your mental health will help you handle the legal and practical aspects of separation more effectively. Dealing with a relationship breakdown can be really tough, but knowing your legal rights and responsibilities can give you the confidence to move forward. Remember, you don't have to face this alone—professional support is available to help you through the process.

The Key Factors to Consider When Making an Offer to Purchase a Business

Tips for a Start Up business

Some Key Considerations

Subdividing a residential property can be quite complicated, and may take a lot of time. However, with thoughtful planning and the right help from professionals, it can also be a very rewarding project. This process involves breaking up a larger piece of land into smaller sections, which can then be sold or developed separately. To make this journey easier for you, we’ve put together a detailed guide. This guide will walk you through each step of the subdivision process, helping you understand what to expect and how to prepare. With the right information and support, you can successfully navigate this process and achieve your goals. 1. Consult the Council Before starting a subdivision project, consult with your local council. They can tell you if dividing your property is possible, and identify any restrictions or requirements that may apply. The council will explain zoning laws, minimum lot sizes, and other important regulations. 2. Check with your Lender If you have a mortgage on your property, it’s crucial to check with your lender to ensure they consent to the subdivision. Subdividing a mortgaged property can affect your loan terms, and your lender might need to issue new mortgage documentation. 3. Engage a Surveying Company You will need to hire a surveying company to draft subdivision plans and determine what utilities are required. The surveyor will prepare a resource consent application to present to the council for approval. They will also coordinate with utility companies to arrange any required physical works and easements. Easements may include rights of way, the right to convey electricity, telecommunications, water, sewage, and stormwater. The surveyor will work closely with the council to obtain the necessary certifications and lodge the documentation with Land Information New Zealand (LINZ). Be prepared to pay a development levy to the council before final approval is granted. Once all work is completed and the council has signed off on the subdivision plan, the final plan – the ‘deposited plan’ is lodged with LINZ. 4. Involve Your Lawyer Let your lawyer know about your plans to subdivide early on. They will work with the surveyor and your bank to get approval for the subdivision and manage any new mortgage paperwork. Your solicitor will also advise on and prepare land covenants, which can impose restrictions on the subdivided properties. These covenants might limit the size or height of buildings, specify building materials, or regulate planting and property maintenance. Your lawyer will prepare new title and easement documentation, and you will need to sign these documents to finalise the subdivision.  Subdivisions involve multiple parties and can be expensive. It’s wise to obtain cost estimates from the council, surveyor, and lawyer before committing to the process. Understanding the financial and time commitments involved will help you make informed decisions and ensure a smoother subdivision experience.