As well as top rugby players, sheep and DIYers, New Zealand is thought to have the most number of family trusts per capita of anywhere in the world. As such, they are an integral and very significant part of the fabric of our economy and society, let alone our legal industry.

It is also incumbent upon company and commercial lawyers to have an understanding of how their area of practice may be affected by trusts, and conversely the impact that their area of practice can have upon trusts. Traditionally, a trust has been considered to be a mechanism for the preservation and conservation of property for the benefit of the objects of the settlor’s bounty (the beneficiaries). However, in recent decades, the trust has become increasingly used as a structure through which commercial enterprise and risk-taking is undertaken. The law has not kept pace with these developments in many respects, which can make the job of a company or commercial lawyer much harder when that job involves trusts. (continued...)