Protect your assets with a Family Trust

Do you need a Family Trust?

Unsure if a Family Trust is right for you? Complete our online eligibility form to find out if you need a Trust and see how much it costs. It takes 5 minutes or so to complete.

GET STARTED NOW

What is a Family Trust?

A Trust is an arrangement of asset holding in which assets are placed in the names of specific individuals known as "Trustees" (typically you and an independent third party), who manage the assets on behalf of another party (the beneficiaries, typically you). 


It is crucial to realise that, the Trust will not, in contrast to a company, have any legal existence apart from the Trustees. For all practical purposes, the Trustees are the Trust. 


The Trustees cannot treat the Trust assets as their own; they can only use and handle them for the benefit of the beneficiaries. A valid commercial purpose must be the driving force behind the creation of a trust. (i.e. tax efficiency is not, however, restructuring, preventing property relationship can be). If you're unsure if a Trust is right for you, feel free to complete our Family Trust Eligibility form here, it takes about five minutes to complete.

Why have a Family Trust?

It is common for business owners, self-employed, blended families and people with a substantial amount of wealth to have a family trust in New Zealand. 


The primary reason for establishing a family trust is to provide creditor protection. If you’re in an industry where you may incur a WorkSafe fine, you pay PAYE, have extensive personal guarantees, or ever become bankrupt, then you should consider setting up a Family Trust.


A Family Trust may prevent property relationship claims; it can hold and distribute wealth while you are alive and continue after you pass away. Subsequently, a family trust can create tax efficiencies and potential savings.


From here, book a FREE 15-minute consultation here with one of our team, who can discuss whether a Trust is the right structure for you, or complete our online eligibility form to see if you need a Family Trust.

COMPLETE FREE TRUST TEST
Law Matters Limited - Book a meeting

Unsure if a Trust is right for you?

Complete our online Family Trust Eligibility form to see whether a Trust is suitable for you. It takes around 5 minutes to complete.

COMPLETE FREE TRUST TEST

How does the process work for setting up a Family Trust?

  • Step 1 - Risk Assessment

    We first complete a risk assessment to determine whether you need a Family Trust. You can get start by completing our online Family Trust Eligibility form here.


    If you're self-employed, have any risk exposure and are taking a salary of at least $70,000, it is likely that a Trust is suitable for your needs. 

  • Step 2 - Initial Consult

    Once we have the information from the Risk Assessment, we will meet with you and discuss your needs and requirements. 

  • Step 3 - Proposal

    Once we have met with you, we will then send you a proposal, which we will send to your Accountant for approval to see if there will be any potential issues from implementing the restructure and the cost. 

  • Step 4 - Approval

    Once we have the approval from your Accountant, you will meet with your mortgage adviser, who will then do a new lending assessment or obtain consent from your bank for the restructure. 

  • Step 5 - Implementation

    Once the bank have issued the loan documents, this usually takes 15 working days or so, we will meet with you to sign the Trust documents.

How much does a Family Trust cost?

A Family Trust, if set up and operated correctly, can provide asset protection and undeniable value. Most clients tend to find that their restructuring will often pay for itself and that they may receive a cashback from the bank, which will often cover most of the fees.


If you're unsure, feel free to complete our online Family Trust Eligibility form to assess whether a Family Trust is right for you and we will advise you on the cost to set it up.

COMPLETE FREE TRUST TEST

Who should have a Family Trust?

It is common for business owners, self-employed, blended families and people with a substantial amount of wealth to have a family trust in New Zealand. 


It can also be used to manage wealth for people who may not be responsible for looking after it, say a disabled family member or family member who may have addiction issues.

FAQ

  • How does a family trust work in NZ?

    The concept of a family trust can be confusing to initially comprehend. A Trust is a mechanism for holding assets where property is put into the name of certain people “Trustees” (usually you and an independent person) who hold the property for the benefit of someone else (the beneficiaries, which would usually include you). It is important to understand that although creating a separate asset holding mechanism, the Trust itself will not (unlike a company) have any legal existence separate from the Trustees. The Trustees are, for all intents and purposes, the Trust. The Trustees can only use and deal with the Trust assets for the benefit of the beneficiaries and cannot treat the assets as their own.

  • How much does a family trust cost?

    There is an increased compliance cost to operating a Trust as there is a requirement for annual meetings and accounts. The cost to set up a Trust depends entirely on your situation, however, we can review your situation and provide a proposal with costs to set it up. 

  • Do family trusts pay tax?

    Yes they do. Trusts are currently taxed at 39%. You can distribute the Trust Fund to beneficiaries who are subsequently on lower tax rates. Beneficiaries are also able to have their own allocation of the Trust Fund, it is important that the beneficiary is aware of this and that any current account incurred by them is exhausted. Dependent beneficiaries are also entitled to $1000 tax free income each year. The allocation of Trust funds are best to be left to sort by your accountant. The reason for establishing a Trust has to be for a legitimate commercial reason (i.e. tax efficiency is not, however, restructuring, preventing property relationship can be).

  • What is the family trust tax rate?

    Trusts are currently taxed at 39%

  • Can you search for a family trust?

    There is no register in New Zealand for Family Trusts. If you are a beneficiary under a Trust, the trustees have an obligation to notify you that you are a beneficiary. You may be able to identify the trustees when you search on the land registry for a particular property, however, you will still need to obtain confirmation from the trustees. 

  • Do you need an Independent Trustee for a Family Trust?

    One way to increase the credibility of your Trust is to have an independent Trustee. This can be a professional Trustee Company, your lawyer, accountant or trusted friend. Your Independent Trustee will have to agree to any decisions concerning the Trust through a Trustee's Resolution. This limits the risk of the Trust being busted or a Trustee being sued.

  • How often should the Trustees have meetings?

    The new Trust Act requires that the Trustees meet at least annually to discuss the Trust's affairs. The Inland Revenue Department also requires that Trusts (including dormant Trusts i.e. that only hold the family home) file an income tax return (form IR6); comply with additional disclosures, and prepare financial statements.

Are Trust Assets Relationship Property?

The assets no longer belong to you and, in certain cases, cannot be categorised as Relationship Property if they have been successfully transferred into a Family Trust, subject to a court order. This is a practical method to help guarantee that your assets are shielded from future partner claims.

Recent advancements in trust law, however, have shown that trusts are not flawless and can be broken under certain conditions. For instance, if relationship property income taints the Trust. It is beneficial to start a new relationship with a Contracting Out Agreement even if a Trust is involved.


It's awkward at the start of a new relationship to discuss what happens to your finances and assets in a separation, death or disability, but it is an important topic to front foot. If you're unsure if you need a Trust or a Contracting Out Agreement, feel free to book a meeting with our team to discuss your needs.

GET IN TOUCH

What does the new Trust Law mean for you

Since the new Trust Law came in, here are some practical points that trustees need to keep in mind:

  • Keeping and understanding all Trust documents, including any statements of the settlors' intentions, which are now given significant weight.
  • Notifying all beneficiaries—even those who are merely regarded as "back-stops"—that they are beneficiaries under your trust is mandatory, unless specific requirements are fulfilled.
  • There are some default obligations that, unless otherwise specified, are legally presumed to exist.
  • It is difficult for a trustee who is also a beneficiary to grant him or her the right to occupy the family home that is now held in trust since trustees are not allowed to use their authority for personal gain.
  • To treat all beneficiaries equally.


A failure to comply with the above puts a trustee at risk of being sued PERSONALLY by a disgruntled beneficiary.

Law Matters Limited - Book a meeting

Unsure if a Trust is right for you?

Book a FREE 15-minute consultation with one of our team, who can discuss whether a Trust is the right structure for you. If the online form isn't your thing, you can contact us by phone or email.

BOOK AN APPOINTMENT

Check out our latest news

Law Matters Limited - Book a meeting - why have a Trust

Why Business Owners Need A Family Trust

August 13, 2025
As a self-employed person, managing your finances and protecting your assets is crucial. One effective way to achieve this is by establishing a family trust. A family trust serves as a mechanism for holding assets, ensuring that your property is managed for the benefit of beneficiaries (which usually includes you). Here’s why a family trust is essential for self-employed individuals, particularly those facing risks from creditors or operating in industries where some risks are not covered by insurance i.e. WorkSafe fines.
Law Matters Limited - Book a meeting

Second Relationships: Considerate Planning for The Second Time Around

August 12, 2025
Blended families and second relationships are becoming increasingly common in New Zealand; however, the default provisions of the Property Relationships Act 1976 may not fairly protect people entering a second relationship. When partners from previous relationships come together, especially with children in the mix, thoughtful planning is needed to ensure that everyone's needs are met and potential conflicts are identified and addressed. This can prevent a significant amount of stress and costs. Here are some key things to consider if you’re in a second relationship:
Law Matters Limited - Book a meeting

The Bank of Mum and Dad

August 12, 2025
According to Consumer NZ, $22.6 billion in loans have been made by the Bank of Mum and Dad, or "the BOMD." This translated into an average contribution of $108,000 from 208,638 parents. You might consider borrowing money from a family member if you are in a position where you have the serviceability (the capacity to meet good levels of borrowing) but need a larger deposit. This implies that you could buy a house and borrow the deposit from BOMB instead of having some or all of it saved. After a while, you might consider refinancing and using your savings or the equity you have gained in the property to pay back the deposit loan. If it is planned and structured correctly, this can be an effective way to get onto the property ladder. Without it, it can have serious legal and emotional repercussions and tax impediments. One way to look at it is that the money you were using to save for a deposit can now be used to repay the loan on the deposit, while the money you were previously spending on rent is now going towards your mortgage and other household expenses. Your first course of action should be to get your financial situation assessed by your bank, or better yet, a mortgage adviser. It is crucial that all parties get independent legal, financial, and tax advice before putting any possible structure into place or sending money.  The type of assistance typically provided by the BOMB could be one or more of the following; Contributing towards the deposit Acting as guarantor Buying a property in partnership with them Buying a property on their behalf