Is one of the most effective tax planning tools available in our days.
New Zealand Foreign Trust:
It is tax free if the beneficiaries are non resident, and if the trust income is sourced outside New Zealand. Unlike other trust centres, New Zealand also has No “Forced Heirship” provisions.
Possible Benefits of Utilising a Trust
Confidentiality
Trust deeds in New Zealand are confidential documents and are not publicly registered.
Estate Planning
Assets held in trust do not form part of the settlors estate upon their death, thus the trustees may use these assets for the benefit of those beneficiaries specified by the settler or trust deed, thereby avoiding legal complication and associated costs.
Tax Planning
A specific wording can be included in a trust to help reducing or eliminating inheritance tax Or estate duty liabilities arising on the death of the settler, as well as income or capital gains tax liabilities of the settlor and / or beneficiaries during their life time.
Protection against Loss of Assets
Assets can be protected from loss which could result from an unsuitable marriage or other relationship; in particular persons or classes of persons can be excluded from benefiting from the trust.
Protection against creditors claims
Should the trust be properly established, this will protect assets from personal claims against the settlors or his estate.
Voidance of Forced Heirship
Assets held in a New Zealand trust are subject to New Zealand law which has no forced heriship provisions and at the same protecting the interests of family members ( Minors or Vulnerable dependants).
The Assets can be held in a Trust are
Stocks and shares including private companies
Bank accounts
Insurance or assurances policies
Real and / or intellectual property
