Set up and operational requirements


1. The trustee services are only applicable to existing trusts which are currently administered outside of New Zealand.

2. We will not provide taxation advice other than that pertaining to New Zealand taxation unless specifically appointed so to do. Should it be necessary for us to contract with a specialist firm to enable it to give such advice, additional funds on account will be required in order that we may discharge such financial obligations to third parties as and when they arise.

3. The Settlor(s) and Benficiaries must not be resident in New Zealand

4. Confirmation (and documentary evidence as considered appropriate) is required by the Settlor(s) that all funds and/or assets currently held in (or to be placed into) the Trust are:

    • not derived from any illegal source or activity;
    • not the subject of any litigation in any other jurisdiction;
    • not connected to persons holding or having held high public or political positions in a jurisdiction other than in New Zealand.

5. Additionally the Settlor(s) must confirm (and provide documentary evidences as considered appropriate) that funds and assets within the Trust currently in existence will not be used for any illegal activities, including but not limited to:

    • accepting and/or distributing the proceeds from drug trafficking or any associated activities;
    • engaging in any form of money laundering;
    • facilitating the financing of terrorism or terrorist acts.

6. In providing services to its clients, we (and out associated companies and their officers and employees) shall not, in the absence of fraud, wilful misconduct or gross negligence, be responsible for any loss or damage sustained or suffered as a result of or in the course of the discharge of the duties specified and shall be indemnified against any such loss or damage by the Trust and its beneficiaries.


Documents to be completed by Settlor (or current Trustee) considering transfer of Trust to New Zealand

1. Letter of Wishes - The letter of wishes principally sets out the manner in which the Settlor wishes the Trustees to exercise their powers and discretions, but is not binding on the Trustees. All binding requirements must be contained in the trust instrument itself.

2. Deed of Retirement / Appointment - This is required to be completed by (1) the current Trustees (2) the Protector and (3) the new Trustees. The Deed provides for the following areas:

    • that the current Trustee consents to the appointment of the new Trustee;
    • that the new Trustee accepts appointment as Trustee subject to the terms and conditions of the Trust;
    • that the Protector of the Trust agrees to the appointment of the new Trustee;
    • that the retiring Trustee is not responsible or liable for any loss arising from the appointment of a new Trustee;
    • that the new Trustee undertakes to indemnify and hold harmless the retiring Trustee against all actions, costs and claims including tax claims from revenue authorities in any part of the world to the extent of the value of the trust fund at that time.

3. Trust establishment questionnaire - This provides us with full information regarding the activities (or proposed activities) of the Trust


How we operate

1. Provided that your application to transfer your Trust qualifies under the conditions here outlined is accepted we will set up a bank account to enable funds to be transferred.

2. In order to set up the account and comply with NZ banking requirements we will require the following from you:

Settlor

    • full legal name(s);
    • residential address documentation (proof of address). Two items are required (the originals of which have been certified by a solicitor / lawyer);
    • date of birth;
    • country of birth;
    • copy of passport (the original of which has been certified - see below)

Beneficiaries

    • full names and date(s) of birth only

The certified documents must include the following:

    • clear statement that the documents are a "True copy, original(s) seen" and for identity document state a "True likeness";
    • name of certifier;
    • signature of certifier;
    • occupation of certifier.

3. Once instructed as new Trustees we will advise the Revenue of the existence of the Trust. This information will include the name or other identifying particulars of the Trust and names and other contact details of N.Z. Trustees. No other information is required (except in the situation where the Settlor is an Australian resident, where that fact has been disclosed).

4. We will ask for an keep a copy of:

    • documents that provide evidence of the creation and constitution of the foreign trust
    • particulars of settlements made on, and distributions made by, the foreign trust, includng the date of settlement or distribution, the name and address of settlors and recipienets of distributions;
    • a record of the assets and liabilities of the foreign trust, and details of all sums of money received and expended by the Trustee in relation to the foreign trust, including evidence of when and where the receipt and expenditure takes place.
    • occupation of certifier.

This information is not provided to our Revenue, but would have to be discolosed only following a specific request from an offshore government with whom New Zealand has a double tax treaty, under the sharing of information agreements by these treaty countries. These provisions result from the Australian Tax Office requests to the New Zealand Government and are to primarily target Australian resident settlors. For practical purposes there is little expectation of active information exchange in respect of indidviduals resident in jurisdications other than Australia.


Timeframe for retention of records

A New Zealand resident trustee of a foreign trust is required to hold financial and other records relating to each foreign trust for New Zealand tax purposes for aperiod of no less than 7 years.