New trust legislation in New Zealand will affect accountants as well as trustee clients, so it’s time to weigh the options.
Reforms to trusts laws in New Zealand are expected to trigger a reduction in the number of trusts.
Up until now trustees have enjoyed a high level of privacy, which will be challenged.
Many CAs act as co-trustees, and their obligations are increased under the new law.
Exiting clients from trusts to alternative
Bernard Mazur CA, the managing director of Auckland-based accounting and advisory firm Acudio, says he has been trying to exit clients from trusts for a long time as the usefulness of the structure has declined.
“We are at the coalface with smaller clients among whom these trusts are typically administered very poorly… but [previously] it has been possible to get away with it.”