{"id":529,"date":"2020-12-02T05:54:31","date_gmt":"2020-12-02T05:54:31","guid":{"rendered":"https:\/\/www.kmlaw.co.nz\/?page_id=529"},"modified":"2020-12-18T02:04:43","modified_gmt":"2020-12-18T02:04:43","slug":"trusts-wills-estates","status":"publish","type":"page","link":"https:\/\/www.kmlaw.co.nz\/trusts-wills-estates\/","title":{"rendered":"Trusts, Wills & Estates"},"content":{"rendered":"\t\t
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Trusts, Wills & Estates<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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KM Law offer personalised and cost-effective advice on managing and protecting your assets and succession matters.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Trusts<\/h3>

If done correctly, trusts offer an effective structure to protect or manage assets in a variety of situations. However, after the Trusts Act 2019 comes into force in January 2021 many trustees will find their existing trust isn\u2019t fit for purpose. Beneficiaries will enjoy far greater transparency about the trust property and administrative workings. More rigorous administration is also necessary under these new laws, attracting professional trustee fees, annual reviews and accountant fees. The bottom line is that by February 2021 trusts will be more effort than they\u2019re worth as they\u2019re currently used, for many different situations.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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There are a few circumstances where trusts remain useful tools. As a business, a correctly set-up trust can operate as creditor protection. Trusts could be utilised in blended family situations, aged-care, disability or estate planning, as well as true intergenerational succession planning to protect significant assets.<\/p>

It is important to note that a trust cannot be set up with the primary objective of achieving any of the above benefits. In fact, the law prohibits you from transferring your assets to a trust to defeat creditors, avoiding asset or means tests and\/or reducing your obligation to pay tax. An analysis of your particular circumstances will need to be undertaking when considering if a trust is beneficial for your family, asset protection, and tax situation.<\/p>

The suitability of new and existing trusts may be in question under the Trust Act 2019, but they remain appropriate for many circumstances. Talk to KM Law for professional trust advice today.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Powers of Attorney<\/h3>

General Powers of Attorney<\/h5>

Under a general power of attorney, you appoint the attorney to legally act on your behalf either in relation to all of your affairs (e.g. the attorney can deal with your bank accounts and any property you own in your name), or only for specific matters (e.g. it is common for children to appoint their parents as powers of attorney for the child\u2019s bank account prior to departing on their \u2018big OE\u2019).<\/p>

The nomination of a general power of attorney is only possible while you have the required legal capacity. If you want an attorney to legally act on your behalf when you no longer have the capacity to manage your own affairs, you need to arrange an enduring power of attorney while you still have legal capacity.<\/p>

Enduring Powers of Attorney<\/h5>

An enduring power of attorney (\u201cEPA\u201d) gives the attorney the right to legally act on your behalf if you become mentally incapable. You must be at least 18 years old and mentally capable when you sign the documentation.<\/p>

There are two types of EPAs:<\/p>