Why might you wind up a trust?
A trust under the current New Zealand law is automatically wound up or terminated after 80 years from the setup date. However, when all the trust assets are distributed amongst the trustees, it might be wound up at an earlier date, dependent on what the deed allows.
In different circumstances, such as when the settlor or trustee immigrates to another country, or the reason for setting up the trust no longer applies, the trust may also be terminated.
The decision and process of winding up a trust can be highly complicated and can cause serious problems, so it often requires a lawyer’s support.
Hayman Lawyers are experts in trusts
Hayman Lawyers are experts in providing legal advice to settlors and trustees about winding up a will and what it might mean for them.
We deal with and give specialist advice in the following way:
- We will review the original trust document to determine whether it allows for the trust to be wound up,
- Prepare a document about the distribution of assets,
- Deal with any trust liabilities that might not have yet been fulfilled, for example, debt owed to the trust or the discharge of mortgage.
The trustees must receive legal and financial advice prior to deciding to wind up a trust before the 80 years to ensure that they do not have any liabilities to the beneficiaries.
At Hayman Lawyers, we will explain the process and what it might mean for you personally if you decide to wind up a trust you are a part of.