We have provided within our Resource Library a detailed summary of numerous legal issues which arise in the trust, property and business realm.
The information within the Resource Library is meant to be a guide only, and should not be relied on without specific legal advice from a lawyer.
The information is intended to try and give our visitors and customers answers to some of their questions.
We do expect, however, that the information is likely to also raise a number of other questions for you which may not specifically be answered.
To that end, we encourage you to REGISTER ONLINE for a meeting with one of our team to provide you with the tailored advice you deserve.
Trustees’ Liability
“An accountable Trustee is one that is trustworthy and responsible” Trust Law recognises that the core duty of trustees is
Prudent Investment
“Put not your trust in Money, but put your money in Trust” – Oliver Wendell Holmes, Sr The Trusts Act
Appointment and Removal of Trustees
“Planning is bringing the future into the present so that you can do something about it now” - Alan Lakein
Beneficiary Disclosure
The Trusts Act 2019 has modified and updated New Zealand’s trust law, with one of the more significant changes being
Is a trust still useful?
TRUSTS ACT 2019 – TRUSTS INTO THE FUTURE With the Trusts Act 2019 changing the way trusts are managed and
Property Investment Loss Ring-Fencing
Following the IRD White Paper from the Policy Team at IRD which was issued in March 2018 legislation is being
Why your accountant needs to talk to us when dealing with your Trust
Don’t want your kids to have to pay back their student loan while still studying? Do you want to prevent
The Property
All property in New Zealand has a particular CERTIFICATE OF TITLE that relates to it. On the title, various interests
Pre-Contract Considerations- Buying A Property
The process of handling the purchase of a house is known as CONVEYANCING and we can handle this for you
Chattels and Rubbish Removal
For those of you who are looking at buying a property now or in the future we would like to
LIM, Building Report and Due Diligence
As well as a finance condition, we recommend that as a minimum, you should consider these three items as additional
Sale and Purchase Agreement – Buying A Property
The SALE AND PURCHASE AGREEMENT is the crucial document to your house purchase. It is important to know the stages
Conditional Contract Stage – Buying A Property
Assuming you have gone through the process and had an appropriately worded SALE AND PURCHASE AGREEMENT drafted, presented the OFFER
Deposits – Buying A Property
There are no specific requirements regarding the due date for payment or the quantum of a DEPOSIT payable on a
Unconditional Contract Stage – Buying A Property
Once you have an UNCONDITIONAL CONTRACT, the process is one of handling the actual SETTLEMENT of the Purchase. As such,
Important Information – Buying A Property
While the information relating to a purchase has hopefully provided you with an overview of the process to purchasing a
Pre-Contract Considerations- Selling A Property
The process of handling the sale of your property is known as CONVEYANCING and we can handle this for you
Sale and Purchase Agreement – Selling A Property
The SALE AND PURCHASE AGREEMENT is the crucial document to your house sale. It is important to know the stages
The Contracting Process – Selling A Property
The contracting process begins with the Purchaser, making an OFFER to you to purchase your property. This OFFER may be
Conditions – Selling A Property
As well as including various warranties relating to the state of the property on settlement and your obligations owed to
Deposits – Selling A Property
There are no specific requirements regarding the due date for payment or the quantum of a DEPOSIT payable on a
Conditional Contract Stage- Selling
Assuming you have gone through the process, and a SALE AND PURCHASE AGREEMENT has been signed, you will now be
Unconditional Contract Stage – Selling A Property
Once you have an UNCONDITIONAL CONTRACT, the process is one of handling the actual SETTLEMENT of the Sale. As such, our
General Costs
To provide you with an indication as to the costs involved with handling your gifting documentation, our estimated yearly fees
Important Information Selling
While the above information has hopefully provided you with an overview of the process to selling your current property, there
The Settlor
The SETTLOR is the person or persons who initiates the TRUST. In a standard FAMILY TRUST situation this would normally
The Trustees
The TRUSTEES are the legal owners of the TRUST'S ASSETS and are the people who decide what happens with those
Independent Trustees
We recommend that every Trust has an independent Trustee who is someone who does not derive a benefit from the
The Beneficiaries
The crucial third party to the Trust Deed are the Beneficiaries. These are the group of people who the Trust
The Appointors
The Appointors are the persons who hold the Power of Appointment. The Power of Appointment is the power to hire
The Protectors
A further, but often unutilised, role in a Trust Deed is that of a Protector. The Protector can act in
The Trust Deed
The actual formation of the Trust occurs when you have decided on who will be the parties included as Settlors,
Transferring Assets into your Trust
The purpose of forming a Trust for asset protection is for transferring your assets into it so that they are no longer
Trustee Duties
As a Trustee you need to be aware that you are liable for your actions in respect of the assets
Acknowledgement Of Debt
The transfer of your home (and/or other property) to the Trust essentially involves you personally providing the Trust with funds
Forgiveness Of Debt
As discussed above, while the Trust owes you money for the purchase of your family home (or other property), the
Gift Statement
The Gift Statement was an IRD required document that provided them with the details of your gifting programme. In the
Gifting as from 01 October 2011
On 17 August 2011, Parliament passed legislation that abolishes Gift Duty on GIFTS made after 1 October 2011. This is
Gifting and Debt Structure
DEBT STRUCTURE – A SUBTLE BUT IMPORTANT DIFFERENCEIf you are considering implementing a FAMILY TRUST for your personal residence, it
Lump Sum vs. Progressive Gifting
Under the legislation effective before 1 October 2011, for a New Zealander, if you have provided GIFTS to people or
Gifting and Rest Home Subsidies
WHAT IS THE RELATIONSHIP BETWEEN GIFTING AND REST HOME SUBSIDIES?The Ministry of Social Development which administers rest home subsidy applications
What Assets should be transferred?
Given that a Trust provides asset protection by way of people gifting their assets to the Trustees, it is important
Contract Considerations
Price – What price are you wanting to offer?What is the price made up of? The purchase of the tangible
Lease Considerations Buying A Business
Often the lease of premises that goes hand in hand with a business is one of the most critical documents
Tax | GST Considerations – Buying A Business
When buying a business, you should pay some attention to the income tax and GST issues surrounding the ongoing business
Contract Considerations
Vendors of businesses often focus on the amount they are selling their business for and forget about other important details
Lease Considerations – Selling A Business
When you sell a business that relies on a business premise to operate from, and there is a lease in
Tax | GST Considerations – Selling A Business
When selling a business you should carefully consider the income tax and GST issues surrounding the sale so that you
Standard Provisions
There are a variety of standard provisions in a normal commercial lease (ADLS), and we touch on these below to
Confidentiality Agreements
When you are selling your business, you are often selling ideas, business processes and intellectual property that you have built
Additional Things to Consider
Apart from the standard clauses and provisions included in most leases the parties should also consider other issues that may
Company Incorporation
The first step to starting a business as a company is the actual incorporation. This is the inception of the
Constitutions
In the absence of other documentation, a company is governed by the legal requirements of the Companies Act. This Act
Annual Returns
An annual return is a statutory obligation for a company that arises under the Companies Act.It is different to the
Share Transfers
When shareholders in a private company are arranging for the transfer of shares to other shareholders or potential new shareholders,
Directorship Management
The people who are directors of a company are an important facet to how the company is managed. They make
LTC Structures
Look Through Company (“LTC”) structures are tax vehicles which have evolved from what was known as the Loss Attributing Qualifying
Company Insolvency
When a company becomes unable to pay its debts as they fall due and get into financial difficulty it can
Sole Trader
Operating as a sole trader simply means running your business in your own name. There is no extra structure that
Partnership Structure
Partnership Trading in partnership with others is very similar to being a sole trader with the difference being that there
Company Structure
A Company is a separate legal entity from its ultimate owners and thereby has its own registration via the Companies
Trading Trust
The use of a trust for trading purposes is not particularly common in New Zealand, but does occur in some
Franchise Agreements
Franchises are becoming more and more popular in New Zealand, especially as the major trading banks become more comfortable with
Terms of Trade – Business
Terms of Trade are the contractual rules and conditions that are essential to a business dealing with its customers. To
Ownership Structures
In terms of life insurance policies there are four main ownership options:Personal Ownership – Under this ownership you own your
PPSR Registrations
The process of registering an interest in a debtors’ property under a General Security Agreement is by way of registering
General Security Agreements
A General Security Agreement is a common form of security provided by a debtor to a creditor.It provides a mechanism
Pari Passu Agreements
A pari passu agreement is a document which effectively deals with different security agreements that have may have been registered
Credit Line Documentation
A credit line agreement is a document that can provide flexibility between a lender and a borrower.It can have a
Mortgage Documentation
Mortgages are the key security interests that lenders take when they are lending funds to debtors and wanting to take
Family Loan Documentation
With the rise in families helping finance younger generations into their first home or to buy a business, the need
Guarantees
Guarantees are often a necessary risk that a person needs to take on when borrowing money. A simple example of
Trial Periods
Employers currently have the right to include in an employment agreement with a new staff member a Trial Period, which
Probationary Periods
A Probationary Period, which needs to be identified as being different to a Trial Period, is one which can allow
Personal Grievances
An employee taking a personal grievance against a business can be a very stressful time for an employer and can
Trademarks
A trademark relates to things such as words, logos or colours which depict the businesses brand or products. By registering
Income Tax Advice
While we are not a firm that helps with compliance from an accounting or taxation perspective, we can provide advice
GST Advice
Goods & Services Tax (“GST”) is another area of tax law which has evolved considerably in recent years. At Prudentia
Tax Planning Advice
New businesses are quite often left facing difficulties in their second and third years when their income tax obligations start
Buy-Sell Agreements
A Buy-Sell Agreement is an efficient way to manage a business transition when one or more shareholders are forced to
Insurance Trustee Services
Where clients are implementing Buy-Sell Agreements for their businesses, Prudentia Law is happy to provide independent/third party trustee services for