Overview of relationship between trustees: the Managing Trustee, Advisory Trustee, and Investment Advisor.

The New Zealand Trustee Act contains provisions for an Advisory Trustee or Managing Trustee to act alongside the Custodial Trustee.

The New Zealand based Custodial Trustee is the principal and professional trustee. It has all the normal rights, duties, powers and responsibilities of a trustee.

The Advisory Trustee or the Managing Trustee need not be New Zealand based and can be an independent third party without the direct responsibilities of the Custodial Trustee.

The Trustee Act also contains provisions which enable a Custodial Trustee to accept and act directions by an Investment Advisor as to the Trust’s investments without incurring liability in relation to those instruments. A trustee’s liability can also be limited in relation to the holding of specific types of investments.

In this way the New Zealand legislation enables management and investment functions to be carried out by persons other than the New Zealand Trustee.

What we do, continued

• Trustee Relationship
• Nature of an Exempt Trust
• International Aspects and Double Tax Agreement
• New Zealand Trust Structure
• New Zealand Tax Position
• Private Trustee Companies (PTC)
• New Zealand Limited Partnerships
• Confidentiality and Reporting Requirements