Smart Estate Planning for Kiwi Families

Estate planning is the process of arranging how your assets will be managed during your lifetime and distributed after your death. You need estate planning if you: own property, have children or dependents, own a business, have assets over $500,000, want to protect your family from creditors, or want to ensure your wishes are carried out. Even young adults benefit from basic estate planning like wills and enduring powers of attorney.

A will takes effect only after death and assets must go through probate (which can take months). A family trust operates during your lifetime, provides immediate asset protection from creditors and relationship property claims, avoids probate delays, and offers flexibility in managing assets. Most people need both - a trust for asset protection and a will for personal items and final wishes.

Costs vary by service: Family trust setup starts at $2,500, wills and EPAs packages from $850 per couple, trust reviews from $1,500, and annual trust administration from $800. We provide transparent upfront quotes with no hidden fees. Investment in proper estate planning can save your family thousands in probate costs, tax penalties, and legal disputes.

Yes, you should review your estate plan every 3-5 years or when major life events occur: marriage, divorce, birth of children, significant asset changes, moving to/from NZ, starting a business, or changes in tax/trust law. All trusts created before 2021 should be reviewed for Trusts Act 2019 compliance.

The Trusts Act 2019 modernized New Zealand trust law and introduced mandatory duties for trustees, enhanced beneficiary rights, stricter record-keeping requirements, and clearer trust administration rules. If you have an existing trust, you must ensure it complies with the new Act. All new trusts we establish are fully compliant from day one.

While DIY wills and trust templates exist, we don't recommend them. Estate planning involves complex legal, tax, and relationship property considerations. Mistakes can result in invalid documents, unintended tax consequences, loss of asset protection, or family disputes. Professional advice ensures your plan is legally sound, tax-efficient, and achieves your goals. The cost of professional help is far less than the cost of fixing DIY mistakes.

Timeline varies by service: Family trust setup takes 2-4 weeks from consultation to completion. Wills and EPAs typically take 1-2 weeks. Trust reviews take 2-3 weeks depending on complexity. We work efficiently while ensuring everything is done correctly. Complex situations with multiple properties or business interests may take longer.

If you die intestate (without a will), the Administration Act 1969 determines how your assets are distributed - which may not match your wishes. Your estate goes through a lengthy probate process, court-appointed administrators manage distribution, legal costs are higher, and family disputes are more likely. Children under 20 receive their inheritance at age 20 (not ideal). A will ensures your wishes are followed and simplifies the process for your family.

A family trust is a legal arrangement where trustees hold and manage assets for the benefit of beneficiaries (usually family members). The trust owns the assets, not individual family members, which provides protection from creditors, relationship property claims, and business risks. Trusts must comply with the Trusts Act 2019 and include a trust deed, trustees, settlors, and beneficiaries.

In New Zealand, family trusts work by transferring ownership of assets (property, investments, business interests) from individuals to trustees who manage them for beneficiaries. Trustees have legal duties to act in beneficiaries' best interests, keep proper records, and make informed decisions. The trust deed sets out the rules for how the trust operates, who can benefit, and how distributions are made. Trusts must file annual tax returns and maintain compliance with the Trusts Act 2019.

Setting up a family trust in New Zealand typically costs from $2,500 for a standard trust with straightforward assets. This includes trust deed drafting, initial legal advice, settlor documentation, and registration. Additional costs may apply for property transfers, complex asset structures, or tax advice. Annual administration costs (accounting, tax returns, trustee services) range from $800-$2,000. While there's an upfront cost, trusts can save thousands in probate costs and protect assets worth far more.

Pros: Asset protection from creditors and lawsuits, protection from relationship property claims, estate planning flexibility, potential tax benefits, avoiding probate delays, and succession planning for family businesses. Cons: Upfront setup costs ($2,500+), annual administration costs ($800+), trustees have legal duties and responsibilities, less flexibility once assets are in trust, must be properly maintained, and may not protect assets in all situations (courts can look behind trusts in some cases).

Yes, family trusts remain highly effective in 2025 for asset protection, estate planning, and succession planning. While the Trusts Act 2019 introduced stricter compliance requirements, trusts still offer significant benefits for business owners, professionals facing liability risks, high-net-worth individuals, and anyone wanting to protect assets from relationship property claims. However, trusts aren't suitable for everyone - the benefits must outweigh the costs and compliance obligations. We can assess whether a trust is right for your situation.

Setting up a family trust typically takes 2-4 weeks from initial consultation to completion. The process involves: initial consultation (1 hour), trust deed drafting (1-2 weeks), reviewing and signing documents (1 week), and transferring assets to the trust (timeline varies by asset type). Property transfers can add 2-4 weeks depending on solicitor workload. Complex situations with multiple properties or business interests may take longer. We work efficiently to get your trust established as quickly as possible while ensuring everything is done correctly.

Yes, in New Zealand a trustee can also be a beneficiary of the same trust. This is very common in family trusts where parents act as trustees and are also beneficiaries. However, trustees must always act in the best interests of all beneficiaries, not just themselves. The Trusts Act 2019 requires trustees to manage conflicts of interest carefully. It's recommended to have at least one independent trustee (such as a professional trustee service, lawyer, or accountant) to provide oversight and reduce conflicts.

If you separate or divorce, your family trust may be affected under the Property (Relationships) Act 1976. Courts have powers to examine trusts and can treat trust assets as relationship property in certain circumstances, especially if: the trust was set up during the relationship, family home or relationship property was transferred to the trust, or one partner has control over the trust. Recent case law shows courts increasingly willing to look behind trusts. Proper trust setup and administration, independent trustees, and pre-nuptial agreements can provide better protection.

Winding up (terminating) a family trust involves several steps: trustees must decide to wind up the trust (as permitted by the trust deed), identify and value all trust assets, pay any debts or liabilities, distribute remaining assets to beneficiaries according to the trust deed, prepare final accounts, file final tax returns, and document the winding up process. Legal and tax advice is essential as there may be tax implications. The process typically takes 2-3 months. Some trusts have a maximum term (80 years) after which they must be wound up.

Your family trust may not be fit for purpose if: it was created before 2021 and hasn't been reviewed for Trusts Act 2019 compliance, your circumstances have changed significantly (marriage, divorce, new children, business changes), trustees haven't been keeping proper records, the trust deed has outdated provisions, you're not sure what the trust owns, or beneficiaries don't understand their rights. We recommend reviewing trusts every 3-5 years or after major life events. Our trust review service (from $1,500) identifies issues and ensures your trust still meets your needs and legal requirements.