1. How to open a trust in NZ?
   A registered financial service provider will write and submit a trust documents on behalf of the customer to the authorities, that ensures the oversight for anti-money laundering and standardisation among legal documents. The customer then has the ability to decide what roles are taken and by who. This is a crucial step in financial planning, often guided by the financial service provider. Once that is finalised, the house can then be retitled into the trust name. It must happen in this order, because the trust must exist before property is transferred in. There is no costs associated with transferring items into a trust. 
    

2. What are the disadvantages of a Trust?
   Establishing a valid trust requires drafting a deed, transferring assets, and often obtaining independent legal and tax advice. Professional fees for setup typically range from NZ$1,000–$4,000 for a straightforward family trust, and more for law firms drafting these. The disadvantages however, are the advantages: removing direct control of the assets from an individual to a trust (which the individual ultimately controls) is what gives the trust power. The power to standalone, away from the activities of the settlor which would include relationship breakdown, and government means testing.
    

3. Is it worth having a trust in NZ?
   A New Zealand family trust still makes sense. It ring-fences your home and business from creditors and relationship claims, can improve Residential Care Subsidy chances, bypasses probate delays, lets you split income tax-efficiently, and protects vulnerable heirs with customised rules. New online services cut setup fees, and annual compliance should remain unchanged re: the assets put in trust. With disciplined governance, the advantages in asset protection, succession speed, and flexible tax planning far outweigh manageable upkeep.
    

4. How do trusts pay out?
   The settlor will inform the trustees (who may be the same person) when—and how much—to distribute, guided by the trust deed and their fiduciary duties. They pass formal resolutions gifting to beneficiaries which is done tax free or distributing capital gains income (usually tax-free) to named or unnamed beneficiaries (ie children of trustee "x"). Payments can be cash, direct bill payments, or in-specie transfers such as shares or property. Minors’ shares are often parked in a compliant “bare” or debt sub-trust until age milestones. All distributions are recorded.
    

5. Can a trust own a car in NZ?
   Yes! a trust is just like a person, it has it's own IRD number, date of creation, and can own a car, house, crypto, a business, and a bank account.
    

6. Which bank account is best for a trust?
   Whichever bank you currently bank with will be the fastest bank to create your trust bank account with. This is because your bank has already ID verified you, and knows your transaction history. The additional information to set up your trust account is limited to trust specific information that you would have on hand after you have made a trust. You can make your trust account at another bank, but you would have to complete ID verification with them. Our customers have our trusts with all the banks in NZ.

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