Trusts can be established for a variety of reasons.  There are two major types:-

Firstly, Trust’s which provide protection for personal assets such as the family home & investments.  These are commonly referred to as “family trusts”.

Secondly, Trust’s established to operate a business.  These are commonly referred to as “trading trusts”.

Trusts can provide a high degree of flexibility in managing your investments or business, and provide a number of tax planning opportunities.  But correct management is vital if the trust is to avoid attack.

Asset Planning:

We’re often asked, “How can we protect our personal assets such as our family home and investments?”  The answer is likely to lie in a mixture of appropriate insurance cover and a family trust.  We’re happy to discuss the issues and options with you.  We’ll make sure you understand what’s involved and how things work.  We’ll then liaise with your lawyer and other professional advisers to ensure the appropriate structure is put in place.

Financial Reporting:

We prepare financial statements for our trust clients at least annually. These are useful for:

  • the trustees (and beneficiaries), to help them understand the financial performance of the Trust and to calculate their tax liabilities,
  • the Inland Revenue Department to check that the various tax laws are being complied with,
  • banks and other financial institutions where loans are involved.

Taxation Responsibilities:

The trustees of a family trust are required to comply with New Zealand’s income tax law.  This is complicated, and changes frequently.  Our experienced Chartered Accountants know which taxes apply and when, and can advise in all tax areas.  And you can be confident that we keep up with the changes.

Trust Law Compliance:

The trustees (the people who run the trust), must comply with trust law.  This includes the maintenance of detailed trust records including Trustee Resolutions, Deeds, financial records, annual financial statements, tax records and tax returns etc.  We’ll work with you to ensure you’re complying.  And we’ll work in with your Trust’s lawyer where necessary.


At GAB, we don’t provide investment advice.  We believe this is best left to the experts – your registered investment adviser.  But we’ll work in with them when required.