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Family Trusts at Risk....  

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Ira OWC
(@ira-owc)
Eminent Member

Kia ora Whanau,

A little bit of useful or useless information whanau.

Family Trusts at risk of being challenged - expert.
12.55 PM Tuesday January 09. 2007 by Helen Twose.

The majority of family trust in New Zealand may be at risk of being successfully challenged according to a trust expert.

Integrity Trust Cheif Executive (ain't that a mouth full whanau) Mark Maxwell said they encountered problems with the management of 75 per cent of Trusts reviewed and 22 percent of Trusts they saw were at serious risk of a successful challenge.

People will challenge Trusts when relationships end or a business fails in order to access the assets held in the Trust, said Maxwell.

'What alot of people will try to prove is that in fact no Trust exists - that I've carried on using those assets as though they were my own', he said.

Maxwell said if Trustees don't carry out the duties of a Trustee, such as holding meetings and involving Trustees in decision making, it makes it easier to prove no trust exists and assets are considered part of the personal property.

Maxwell said a major problem within the Trust industry is people are being sold Trusts but aren't being educated about their role.

Trustees need to be sitting down together at least once a year to consider and record their decisions, he said.

'People are going to their lawyer or Trustee company, signing the Trust and because they've got that collection of 30 peices of paper they believe their protected because thats what they think the Trust is', he said.

'But the Trust is more your actions and the actions of Trustees afterwards. It's an ongoing commitment for the life of the Trust.

Maxwell said family trusts have become an increasingly popular option for asset protection among elderly people, business owners and single people entering a de facto relationships.

Maxwell estimates between 250,000 and 300,000 family Trusts operate in New Zealand.

TOP FIVE TRUST ISSUES
Not all Trustees are involved in decision making.
Formal Trustee meetings are not being held.
Trustee decisions are not recorded in writing.
Gifting is not being completed either on time or at all.
Widespread intermingling of Trust and personal and/or company finances.

NZ Herald Staff...

Noho ora mai

Quote
Posted : 19 February, 2008 8:22 am
Nani OWC
(@nani-owc)
Eminent Member

The same can be said for Whānau Trusts

ReplyQuote
Posted : 19 February, 2008 12:44 pm
Nani OWC
(@nani-owc)
Eminent Member

quote:


Kia ora Whanau,

A little bit of useful or useless information whanau.

Family Trusts at risk of being challenged - expert.
12.55 PM Tuesday January 09. 2007 by Helen Twose.

The majority of family trust in New Zealand may be at risk of being successfully challenged according to a trust expert.

Integrity Trust Cheif Executive (ain't that a mouth full whanau) Mark Maxwell said they encountered problems with the management of 75 per cent of Trusts reviewed and 22 percent of Trusts they saw were at serious risk of a successful challenge.

People will challenge Trusts when relationships end or a business fails in order to access the assets held in the Trust, said Maxwell.

'What alot of people will try to prove is that in fact no Trust exists - that I've carried on using those assets as though they were my own', he said.

Maxwell said if Trustees don't carry out the duties of a Trustee, such as holding meetings and involving Trustees in decision making, it makes it easier to prove no trust exists and assets are considered part of the personal property.

Maxwell said a major problem within the Trust industry is people are being sold Trusts but aren't being educated about their role.

Trustees need to be sitting down together at least once a year to consider and record their decisions, he said.

'People are going to their lawyer or Trustee company, signing the Trust and because they've got that collection of 30 peices of paper they believe their protected because thats what they think the Trust is', he said.

'But the Trust is more your actions and the actions of Trustees afterwards. It's an ongoing commitment for the life of the Trust.

Maxwell said family trusts have become an increasingly popular option for asset protection among elderly people, business owners and single people entering a de facto relationships.

Maxwell estimates between 250,000 and 300,000 family Trusts operate in New Zealand.

TOP FIVE TRUST ISSUES
Not all Trustees are involved in decision making.
Formal Trustee meetings are not being held.
Trustee decisions are not recorded in writing.
Gifting is not being completed either on time or at all.
Widespread intermingling of Trust and personal and/or company finances.

NZ Herald Staff...

Noho ora mai



This could also be the same for Whānau Trusts

ReplyQuote
Posted : 19 February, 2008 12:52 pm
Gemini G OWC
(@gemini-g-owc)
Eminent Member

Kia ora Ira,

That is useful information. Well done. Thank You.

And as for you Nani, damn woman get a life!

'POWER TO THE PEOPLE'

ReplyQuote
Posted : 19 February, 2008 1:42 pm
pepe OWC
(@pepe-owc)
Active Member

Kia ora Ira,
Thank you for alerting us to these Trust issues. I for one had no idea of these things you have just outlined. Ignorance is definitrly not bliss!!!

ReplyQuote
Posted : 25 February, 2008 10:23 pm
Hinga Whanau
(@hinga-whanau)
Active Member

Kia ora Ira thank you for that information and for taking the time to keep us informed.

ReplyQuote
Posted : 28 February, 2008 11:50 am
paddy OWC
(@paddy-owc)
Active Member

Thank you Nani

Can you clarify where this will leave Whanau Trusts set up with Maori Land Court?
Frances

ReplyQuote
Posted : 16 March, 2008 4:09 pm
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