Monday, September 30, 2013
The Law Commission in New Zealand has proposed a new trust law to keep up with the times. In previous years, New Zealand created and managed between 300,000 and 500,000 trusts yearly. However, the law that was governing the trusts was drafted in 1956. After a recent study of the trust law, the Law Commission is proposing the Trusts Act. Some of the highlights of what the act will include are mandatory trustee duties, an increase the duration of a trust lifetime, the creation of a duty to provide information to potential beneficiaries, and a ban on limiting trustee's liability for breaches arising from willful misconduct or gross negligence. As the proposed legislation changes, different trust implications will arise.
See Arthur Young, John Holland, Bradley Kidd, Lyndsey Partridge, Phillippa Wilkie and Sabrina Muck New Zealand: A New Trusts Act "Fit For the 21st Century", Mondaq, Sep. 14, 2013.