Educating clients to protect and preserve their assets.
A Comprehensive Approach
The reasons for, and expectations of, a trust are as varied as the individuals who seek to establish them. What doesn’t change is the need for trustworthy and legally compliant advice.
It is easy to be overwhelmed by the decision to form and run a trust. New Zealand Foreign Trust Services walks you through the decisions and works with you to see your wishes fulfilled.
Throughout the trust’s life, all information is provided in a timely, cost-effective manner – in easy to follow language, backed with impartial advice from our expert team.
During years of experience, we have established a detailed process for effectively structuring and maintaining a successful New Zealand foreign trust.
It’s sufficient to say that our process creates a trust vehicle, which offers a high degree of confidentiality.
If asset protection is the long-term goal, ongoing legal compliance is the mechanism.
- We will forward to the client/intermediary a Fact Find document which needs to be completed in full. We will also require at this time a certified passport, certified proof of residential address and verification of source of wealth/funds.
- A checklist outlining all the required information will also be sent at the outset which will be required to be completed for all parties to the Trust along with an Engagement Letter outlining the services provided which will be required to be signed and returned to our office. This Engagement Letter will include all fees for the establishment, registration with the NZ IRD, compliance costs, annual fees and accountancy fees.
- Once the Fact Find has been completed in full and all documentation has been forwarded, we will commence our due diligence
- As part of our due diligence, we will have our compliance officer complete all relevant worldwide checks on the settlor, protector, and beneficiaries along with checks on the supplied documentation as it relates to client identification and verification. i.e. passports and verification of source of wealth/funds.
- Once the due diligence has been signed off by the compliance officer, we will then prepare a draft Trust Deed which is specific to the client and their requirements. A Memorandum of Wishes will also be prepared and executed by the client confirming how the Trust is to be dealt with following the passing of the Settlor.
- Once the draft Deed has been approved, the original will be couriered to the client for execution along with our invoice for one-half of the total amount payable for the establishment of the Trust pursuant to the signed Engagement Letter.
- Once the executed Trust Deed has been returned, we shall then execute as Trustee and lodge all documentation with the NZ IRD.
- All documentation pertaining to the transfer of assets into the name of the Trustee or CV (Dependent on the advice of the financial adviser).
- If the assets are to be transferred into the name of the Trustee, then a bank account will be established with the nominated bank.
- Buy/sell Agreement Process – Buy and Sell Deed Questionnaire completed with client.
- If a CV is to be created, this will be created by the Financial Adviser and as Trustee we will execute the Participation Certificate.
- Once all assets are in Trust, we will complete the necessary Minutes etc. to ensure compliance for the Trust.
- Copies will be sent to all relevant parties and the Trust placed on the Annual Review system. Annually Financial Accounts will be required to be prepared and registered with the NZ IRD. Annual Minutes and review of the Memorandum of Wishes will be required also.
The administration + review process
With any trust the administration process is paramount. Indeed, it’s well documented that many trusts suffer when they fall short of what is seen to be absolutely necessary in the administration space.
Having reviewed many trusts over the years we have adopted a robust and proactive administration system to ensure that the trust remains ‘compliant’ throughout the lifetime of the trust.
Just as the administration of your trust is vitally important, so is the annual review process. If a disciplined and holistic review is not undertaken, the trust may lose sight of evolving requirements, or – at worst – risk being deemed non-compliant.
Legal compliance can only be achieved through a combination of careful structuring and diligent record keeping. The annual review will examine records of the trusts’ activities, documents, performance, new assets, inheritances, fund distributions, continuing structural relevance, and future strategy.
The review process is usually synonymous with annual trustee meetings. Both are a great pleasure for us, as this ensures everyone involved in the trust has the opportunity to focus on its success.
If you want maximum benefits from a New Zealand Foreign Trust, Jonathan Cron on +64 27 432 0875 or email us.
Your privacy and our security procedures uphold our reputation
Trusts can help consolidate widely dispersed assets.
Trusts can significantly mitigate complexities for international estates.
Trusts help keep your private and family assets safe from business risk and other attacks.
Trusts enable you to pass family wealth smoothly from one generation to the next.
“The reasons for, and expectations of, a trust are as varied as the individuals who seek to establish them. What doesn’t change is the need for trustworthy and legally compliant advice for the trust to remain relevant.”
– Penny Cron