Winding Up a Trust 2024 - Online CPD

Package includes:

Online CPD Module  l  Electronic booklet  l  PowerPoint Presentation

Package Fee (incl GST)

• $115 - NZLS members and Associate members
• $149 - Non-members

Note: Access to the online files is via your "My CPD" page. If you would like to purchase multiple packages, please contact us here.

Online CPD Module

The landscape in relation to trusts has evolved in recent years. There will often be occasions where it will be in the best interests of your clients to review current arrangements. This module will take a practical approach in considering when it might be appropriate to bring a trust to an end, the process for this, common pitfalls, and the integration of a trust with longer term life and succession planning arrangements. This module is an update on the very popular sessions in 2021 and 2022.

Topics covered will include:

• Reasons for winding up a trust
• The means of winding up a trust and the practical implications of each route
• The trustees’ obligations and potential liabilities and how they should be dealt with
• Practical issues and potential pitfalls that can arise on winding up a trust.

Learning objectives

By completing this module you will:

• Understand the factors that are relevant when deciding whether to wind up a trust.
• Understand the trustees’ role and obligations in winding up a trust, including the trustees’ risks and how they can be mitigated.
• Be able to recognise and manage common issues and pitfalls that may arise on the winding up of a trust.

Electronic paper 

Author: Aimee Mitchell
Published: 8 May 2024
Pages: 27

Introduction

The legal and political landscape for trusts has evolved significantly over the last five-ten years. Firstly, the introduction of the Trusts Act 2019 brought about a new level of awareness about the duties and obligations of trustees and introduced new processes and procedures for the disclosure of trust information.

Following the introduction of the Act, we have seen changes to the tax legislation increasing the level of disclosure made by trustees to the IRD, and of course, the most recent changes to the trustee tax rate.

Understandably, many settlors and trustees are considering these changes, weighing the additional costs and obligations, and reassessing their need for a trust. Many are wondering whether there remain any advantages for them to retaining their trusts. This paper considers when it may be appropriate to bring a trust to an end, the means by which a trust may be wound up and practical issues that practitioners need to keep in mind when winding up a trust.

This paper considers issues relating to the winding up of private express trusts. Additional rules apply to the winding up of charitable trusts and superannuation trusts. Those additional rules are not covered in this paper.

PowerPoint Presentation

These are the slides included in the presentation.