What are the legal duties of a trustee?
The responsibilities can include recording expenses and income, distributing funds to beneficiaries, filing taxes on any income the Trust makes and keeping record of other transactions that occur. The simplest Trustee definition is: the named person who manages a Trust’s assets.
How many trustees are required for a whānau trust NZ?
A certain number (a quorum) of trustees must be present to make any decision. Where there are three or more responsible trustees, a majority of the trustees is enough (unless the trust order sets a different quorum requirement).
What rights do beneficiaries have over the trust assets NZ?
Individual beneficiaries have no rights to assets until the trustees exercise a discretion in their favour. Consequently, an obligation for trustees to act impartially while managing trust assets for the benefit of all beneficiaries is reasonable and appropriate.
What are the duties of a trustee NZ?
These are the duty to:
- know the terms of the trust;
- act according to the terms of the trust;
- act honestly and in good faith;
- only use the power given to you by the trust for proper purposes; and.
- act for the benefit of the beneficiaries or to promote the permitted purpose of the trust.
Should you have a whānau trust?
A whānau trust is often used to combine Māori land interests to be held and managed for the benefit of the whānau and future generations. A key benefit of using a whānau trust is that the trust can hold land interests together and avoid fragmentation of land shares.
How do you dissolve a whānau trust?
To terminate a trust, we will ask you:
- to fill in an application to terminate a trust on our general application form – Form 1 – General form of application [PDF, 122 KB]
- also include copies of the following documents:
- file your completed application with the court and pay the filing fee of $60.
Can beneficiaries take money out of a trust?
The simple answer is no. A trustee has a fiduciary responsibility to uphold the wishes of the grantor and the terms of the trust. Therefore, they must do what the trust says. However, a beneficiary can contest the wishes of the trust in court.
How do I set up a whānau trust?
To create a trust, we will ask you: To fill in the appropriate application form: application to constitute a Whānau Trust (non succession) – form 36 [PDF, 100 KB]…Creating a trust or incorporation
- Meeting and agreement.
- Terms of trust / trust order.
What does Ahu Whenua trust mean?
An Ahu Whenua trust is a common land trust. It is designed to promote the use and administration of one or more Māori land blocks or general land owned by Māori on behalf of its owners. An ahu whenua trust: can be established over one or more land blocks.
Who owns the money in a trust?
Trust funds include a grantor, beneficiary, and trustee. The grantor of a trust fund can set terms for the way assets are to be held, gathered, or distributed. The trustee manages the fund’s assets and executes its directives, while the beneficiary receives the assets or other benefits from the fund.
Can a trustee keep money from a beneficiary?
Yes, a trustee can refuse to pay a beneficiary if the trust allows them to do so. Whether a trustee can refuse to pay a beneficiary depends on how the trust document is written. Trustees are legally obligated to comply with the terms of the trust when distributing assets.
Who can be a trustee of land?
(1)The trustees of land may, by power of attorney, delegate to any beneficiary or beneficiaries of full age and beneficially entitled to an interest in possession in land subject to the trust any of their functions as trustees which relate to the land.
What is a 438 trust?
Ahu Whenua Trusts replace the old section 438 trusts. This type of trust is a land administration trust designed to manage whole blocks of Māori freehold land.
What are the obligations of a whānau trust?
It is important to remember that a whānau trust still has obligations under the Trustee Act 1956, such as having a separate bank account, an IRD number and a trust order (or trust deed). The trustees must also comply with trustees’ duties under Te Ture Whenua Māori Act and the Trustee Act.
When to call a general meeting for a whānau trust?
The Trustees shall call a general meeting of the beneficial owners within 12 months of the date of the creation of the Whānau Trust and thereafter at such times as the Trustees in their discretion shall determine and at least once in every five years. (b) To report to the Court
Is there a court record of a whānau trust?
For whānau trusts, there may not be a court record, but they are usually small enough that people know each other. Trustees must also maintain a list of beneficiaries’ contact details. How often do trustees have to hold meetings? Usually the trust order will set out how often trustees have to hold meetings.
How do I withdraw my shares from a whānau trust?
If you want to withdraw from a whānau trust, you can apply for a partial termination of the trust, to take your shares out. Next Section | Māori incorporations