TRUSTS
New Zealand does not impose tax on foreign trusts – trusts which have no New Zealand resident settlors or beneficiaries and derive no income in New Zealand.
Moreover, New Zealand law provides for the separation of trustee functions, allowing for certain management decisions to be made from outside New Zealand and offering settlors the opportunity to be involved in an advisory capacity.
A variety of options are available for the structuring of trust assets including the use of other New Zealand entities.
Further considerations in favour of New Zealand trusts include:
Moreover, New Zealand law provides for the separation of trustee functions, allowing for certain management decisions to be made from outside New Zealand and offering settlors the opportunity to be involved in an advisory capacity.
A variety of options are available for the structuring of trust assets including the use of other New Zealand entities.
Further considerations in favour of New Zealand trusts include:
- Confidentiality – no public disclosure of settlor or beneficiaries.
- Careful structuring minimises reporting requirements.
- Eighty year perpetuity period.
- New Zealand law contains provisions that offer settlors and beneficiaries a degree of control without compromising their tax position (provided advice is sought in the jurisdiction the settlor and beneficiaries are resident).
- Well understood structure governed by well developed common law principles.
