Managing your trust well: why compliance matters more than ever

Trusts have long been a key part of financial planning in Aotearoa, particularly when it comes to protecting family assets and managing intergenerational wealth. But the way trusts are run today looks very different to what many people remember, and if you haven’t reviewed yours in a while, now’s the time.

Since the introduction of the Trusts Act 2019 (which came into force in 2021), the obligations on trustees have become clearer and more demanding. That’s a good thing for transparency and fairness, but it also means that managing a trust is no longer something you can set and forget.

At Munro Benge, we’re here to support you in understanding the role and management of trusts. We can help you navigate the complexities and ensure that your trust structure aligns with your overall financial strategy. Here’s what you need to know.

Trusts are about protection

The core purpose of a trust is asset protection. For many families, that means protecting the family home, planning for intergenerational wealth, or maintaining more control over how assets are used, shared, or loaned.

But a trust isn’t a “set and forget” structure. With changes to the law, trustees now have greater responsibilities to act transparently and in the best interests of all beneficiaries, not just the person who set up the trust.

Trusts are especially useful in complex family or financial situations

A well-structured trust can help navigate a range of challenges, including:

• Rest home subsidies or aged care considerations
  
  
• Relationship property disputes
  
  
• Lending money to children for home deposits
  
  
• Gifting money over time
  
  
• Managing finances in blended families
  
  

If you’re helping a child into their first home, for example, a trust can help you formalise the loan, giving you the ability to recall the funds later and ensuring they stay within the family in the event of a relationship breakdown.

Trustees have real responsibilities

A trust isn’t just a family tool. It’s a legal entity with formal obligations. Trustees must act on behalf of all beneficiaries, not just the founders or parents, and may be held accountable for decisions that don’t align with the law.

That’s why independent oversight is crucial. Whether you're managing a trust on your own or as part of a group, it’s important to seek professional advice to help navigate legal complexities and ensure that decisions are documented appropriately. In some cases, bringing in a professional trustee can help mitigate risks and provide further peace of mind.

Good trust management comes down to clarity and communication

Like any business or financial structure, a trust is only as effective as the people managing it. That means:

• Regularly reviewing the trust’s purpose and documentation
  
  
• Making sure all trustees understand their legal obligations
  
  
• Keeping records of decisions and communications
  
  
• Being clear about who the beneficiaries are and what they’re entitled to
  
  

Let’s talk about trust strategy, not just compliance

Since the Trusts Act came into force, trustees now face clearer and more demanding obligations. If your trust hasn’t been reviewed in the past few years, it may not meet current requirements and that can lead to unnecessary stress or legal risk.

At Munro Benge, we work alongside you to review your trust’s structure, ensure it aligns with the law, and make sure it still serves its intended purpose. Whether you're setting up a new trust or need to update an existing one, we’ll help you get it right.

Let’s have a conversation about keeping your trust fit for the future.

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