New Zealand, Maori Aotearoa, island country in the South Pacific Ocean, the southwesternmost part of Polynesia. New Zealand is a remote land—one of the last sizable territories suitable for habitation to be populated and settled—and lies more than 1,000 miles (1,600 km) southeast of Australia, its nearest neighbour. The country comprises two main islands—the North and South islands—and a number of small islands, some of them hundreds of miles from the main group. The capital city is Wellington and the largest urban area Auckland; both are located on the North Island. New Zealand administers the South Pacific island group of Tokelau and claims a section of the Antarctic continent. Niue and the Cook Islands are self-governing states in free association with New Zealand.
New Zealand is a land of great contrasts and diversity. Active volcanoes, spectacular caves, deep glacier lakes, verdant valleys, dazzling fjords, long sandy beaches, and the spectacular snowcapped peaks of the Southern Alps on the South Island—all contribute to New Zealand’s scenic beauty. New Zealand also has a unique array of vegetation and animal life, much of which developed during the country’s prolonged isolation. It is the sole home, for example, of the long-beaked, flightless kiwi, the ubiquitous nickname for New Zealanders.
Contemporary New Zealand has a majority of people of European origin, a significant minority of Maori, and smaller numbers of people from Pacific islands and Asia. In the early 21st century, Asians were the fastest-growing demographic group.
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New Zealand Trustee Act 1956
|Formal name||Foreign Trust|
The settlor is the person who establishes and whose assets are put into the trust. It may be either an individual or a legal entity.
The settlor may also be the beneficiary of the assets and may, subject to certain provisions, retain control of the trust. There may not be protection from a subsequent bankruptcy after assets are gifted to the trust.
Trustees are the legal owner of the assets who have a fiduciary and statutory obligation to act in the best interest of the beneficiaries.
New Zealand foreign trusts shall be administered by at least one resident custodian trustee, either an individual or a company.
Beneficiaries are those who get benefit from the trust. Beneficiaries may be natural persons or body corporates.
There are specific provisions to prevent beneficiaries from draining the trust of its assets and spending in a thrifty way. There are no specific legislative provisions regarding probate and forced heirship.
A protector is not mandatory, but may be appointed by the settlor. The settlor can appoint himself or use a trusted individual (attorney, professional, family member) in which consent must be given for certain actions made by the trustee.
The trust deed is a strictly private arrangement between the settlor and the trustee.
A trust does not need to be registered with any statutory bodies. The trust deed is a strictly private arrangement between the settlor and the trustee.
|Protection from foreign Judments|
The Trustee act does not include provisions to ignore and not enforce foreign judgments. The Hague Convention on Trusts does not apply in New Zealand.
|Protection from creditors|
The Trustee act does not repeal the Statute of Elizabeth, so transfers by the settlor to the trust may be set aside if the settlor transferred the property before the debt arose. The creditor must prove the fraudulent transfer of assets to the trust, which is not defined by the law. Creditors’ claims may be brought jointly. If a fraudulent transfer is proven, the trust may be declared invalid.
|Protection for immigrant trusts|
Trusts that migrate from other jurisdictions do not benefit from retroactive protection.
Certain records need to be held by the resident trustee in NZ including a copy of the trust deed. details outlining the settlements by the trust, details of the distributions made by the trust, names, and addresses of the settlers and beneficiaries and a record of the assets and liabilities and all sums of money received and sent by the trust
If the trust carries out business activities must keep accounting information. There are no annual reporting requirements.
A trust established in New Zealand may not be subject to local taxes applicable to the assets and income of the trust, provided that no residents of New Zealand benefit from the trust and no physical assets are located there.
It must be noted that the choice of law of the trust would not be applicable to tax matters, which would be governed by the respective jurisdiction where the settlor, beneficiaries, assets or trustee are located, as applicable.
You should consult with your tax advisor or accountant to know the tax implications in your jurisdiction of residence when establishing a trust in New Zealand, transfer assets to it and receive profits from said assets.
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