We all know life comes with changes

Author -  Perpetual Guardian

Spicers advisers spend a good deal of time making sure their client’s financial affairs are properly structured with risks being identified - all with a view to achieve your goals.

In the same way as you regularly review your goals and investment portfolios your estate planning should also be reviewed to ensure it is up to date and reflects your current situation. Changes to legislation and case law can mean you need to make changes as well. 

Wills and Enduring Powers of Attorney

If you do not have a Trust, then your Wills and Enduring Powers of Attorney are the main documents to be reviewing.

  • Is your choice of executor or attorney still valid? Perhaps the person you have chosen is no longer able or willing to act. 
  • Have you listed all the people you want to have as beneficiaries in your Will? Perhaps you have more children or grandchildren now. 
  • Do you want to leave a legacy to a charity? As we age we realise the benefit we can leave behind can be part of something greater than just our immediate family.
  • Have you set up in business or invested in a business? What do you want to happen to that shareholding? Are you a director and so need to appoint an Attorney to represent you if you were to be unable to act for yourself. 
Appointing trustees

With Trusts we find that one of the issues clients come to us for advice about relates to the appointment of trustees and the compliance of a Trust to provide the right protection. 

In determining who is an appropriate trustee clients must exercise care and attention to ensure all trustees have the appropriate skills, both personal and financial, to: 

  • Meet the necessary compliance requirements; 
  • Make decisions in the best interests of all of the beneficiaries, not just one class; and, 
  • Preserve and grow the assets held in Trust. 

However, often the appointment of a trustee is made as a matter of convenience rather than appropriateness! 

Furthermore, what is not often considered where you may be acting as a trustee for others, is do you possess the skills to fulfil this role, is the trust operating compliantly and are you acting as an owner of the assets or are you merely rubber-stamping decisions made by others? 

It is not uncommon for high net worth clients to act as a trustee for friends and family members. A key factor often overlooked is whether your activity as a trustee puts your own financial situation at risk. Are you aware of the liabilities and responsibilities which might adversely affect your own situation? 

Trustee decisions are now being tested either when a family relationship ends or by classes of beneficiaries who were not in place at the time the Trust was created e.g. children and grandchildren.

Litigation and trust busting are now common place and if you act as trustee you should consider seeking advice regarding the appropriateness as to your appointment, to avoid potential personal loss.

Perpetual Guardian's Trust 'warrant of fitness'

Perpetual Guardian’s Trust 'warrant of fitness' service is a way for you to check Trust compliance or as an interim step to explore how trustee appointments that are no longer suited may be changed. 

If you would like to speak to one of our experienced team you can call us on 0800 737 738 or click on www.pgtrust.co.nz/spicersclient

We all know life comes with changes

Spicers advisers spend a good deal of time making sure their client’s financial affairs are properly structured with risks being identified - all with a view to achieve your goals.

Spicers advisers spend a good deal of time making sure their client’s financial affairs are properly structured with risks being identified - all with a view to achieve your goals.

In the same way as you regularly review your goals and investment portfolios your estate planning should also be reviewed to ensure it is up to date and reflects your current situation. Changes to legislation and case law can mean you need to make changes as well. 

Wills and Enduring Powers of Attorney

If you do not have a Trust, then your Wills and Enduring Powers of Attorney are the main documents to be reviewing.

  • Is your choice of executor or attorney still valid? Perhaps the person you have chosen is no longer able or willing to act. 
  • Have you listed all the people you want to have as beneficiaries in your Will? Perhaps you have more children or grandchildren now. 
  • Do you want to leave a legacy to a charity? As we age we realise the benefit we can leave behind can be part of something greater than just our immediate family.
  • Have you set up in business or invested in a business? What do you want to happen to that shareholding? Are you a director and so need to appoint an Attorney to represent you if you were to be unable to act for yourself. 
Appointing trustees

With Trusts we find that one of the issues clients come to us for advice about relates to the appointment of trustees and the compliance of a Trust to provide the right protection. 

In determining who is an appropriate trustee clients must exercise care and attention to ensure all trustees have the appropriate skills, both personal and financial, to: 

  • Meet the necessary compliance requirements; 
  • Make decisions in the best interests of all of the beneficiaries, not just one class; and, 
  • Preserve and grow the assets held in Trust. 

However, often the appointment of a trustee is made as a matter of convenience rather than appropriateness! 

Furthermore, what is not often considered where you may be acting as a trustee for others, is do you possess the skills to fulfil this role, is the trust operating compliantly and are you acting as an owner of the assets or are you merely rubber-stamping decisions made by others? 

It is not uncommon for high net worth clients to act as a trustee for friends and family members. A key factor often overlooked is whether your activity as a trustee puts your own financial situation at risk. Are you aware of the liabilities and responsibilities which might adversely affect your own situation? 

Trustee decisions are now being tested either when a family relationship ends or by classes of beneficiaries who were not in place at the time the Trust was created e.g. children and grandchildren.

Litigation and trust busting are now common place and if you act as trustee you should consider seeking advice regarding the appropriateness as to your appointment, to avoid potential personal loss.

Perpetual Guardian's Trust 'warrant of fitness'

Perpetual Guardian’s Trust 'warrant of fitness' service is a way for you to check Trust compliance or as an interim step to explore how trustee appointments that are no longer suited may be changed. 

If you would like to speak to one of our experienced team you can call us on 0800 737 738 or click on www.pgtrust.co.nz/spicersclient

We all know life comes with changes
Important information

The content on this website is for information only. The information is of a general nature and does not constitute financial advice or other professional advice. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. While care has been taken to supply information on this website that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission. A disclosure statement is available from your adviser on request and free of charge.

 

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