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Before
you set up your Trust, go through this checklist. This will explain
all the questions you will be asked when setting up your Trust.
In each case there will be help to assist you in determining your
answer.
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Click
here to
print off this glossary of terms.
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Click
here to
print a blank form so you can fill in the details off-line.
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| Trust
name |
Your
Trust name. On documentation your Trust will be referred to
as "The whatever you entered here Trust"-
so don't enter "The" at the front or "Trust"
at the end.
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| Settlors |
Enter
the names of the Settlors, up to 2 people (generally you and
your partner). The Settlor(s) are the people setting up the
Trust. Make sure, if you are or will be gifting your house
or other posessions to the Trust, that the "Giftor"
flag is ticked, so that you can make gifts to your Trust and
produce yearly gifting tax certificates for the IRD.[You will
be prompted during the Trust setup for their IRD numbers;
if you do not have them to hand you can enter them at a later
date.]
You are also required to enter the Settlors' town of habitation,
and occupation.
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| Beneficiaries |
The
Beneficiaries are literally the people who will benefit from
the Trust - they are entitled to distributions that the Trust
may want to give, or interest free loans, or may even be given
a house - these benefits are at the sole discretion of the
Trustees. You may enter two main beneficiaries, whose heirs
(ie children, grandchildren and so forth) will also benefit.
You may like to include the names of up to five individuals,
charities or Trusts who will also benefit, but whose heirs
(if applicable) will not.
Generally the Settlors will be the Beneficiaries, or it may
be their children (if, for example, you are setting up a Trust
for your child for a 21st birthday present).
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| Final
Beneficiaries |
A
Trust can only last for a maximum of 80 years; the Final Beneficiaries
are those who will receive the Final Assets should any still
exist at the time the Trust is dissolved.
You can name your final beneficiaries, or choose that they
be "discretionary", ie at the discretion of the
Trust (which generally means your children and grandchildren).
You might want to specifically name children from previous
relationships as Final Beneficiaries to protect their interests.
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| Trustees |
The
Trustees are the persons responsible for running and administering
the Trust. You may name 2 to 5 Trustees. We recommend the
use of a minimum of three: you and your partner plus a close
family member or friend who will be able to act impartially
in the case of you and your partner seperating. [If you
do not have a partner then we recommend a minimum of two Trustees,
yourself anf a family member/friend.] Some lawyers suggest
you can run a Trust with one Trustee, but this is disputed
by others, and may cause the IRD to see the Trust as a sham.
You will be required to enter the town of habitation of each
Trustee, plus their occupation.
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| Person
with power to hire and dismiss Trustees |
Usually
it is the Settlors who have ultimate power over the Trustees;
however if you wish you can name up to 2 people with this
power. This power rests with these people until death. [In
the case of a parent setting up a Trust as a 21st birthday
present for their child, for example, this person would be
the child]
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| Date |
Generally
you will enter today's date as the creation date of the Trust.
If you are registering an existing Trust you will enter the
original date the Trust was established.
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When
you have entered all required information your Trust document will
be sent to you by email.
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