In New Zealand, it is popular to hold property and assets using trusts. This can be beneficial for a range of legal, tax and financial reasons. A trustee is one of the most important parties to a trust because they are responsible for managing the trust. They are the legal owners of the trust assets and property. When selecting a trustee, you may choose an individual and\/or a company (known as a \u2018corporate trustee\u2019). This article explains:<\/p>\n\n\n\n
A trust<\/a> is a legal arrangement where a person or entity (the trustee) holds property on behalf of other persons or entities (the beneficiaries). Under a trust arrangement:<\/p>\n\n\n\n For example, you may choose to establish a trust with a corporate trustee to hold shares in another company. The shareholder of those shares is \u2018LV Trust Limited as trustee for LV Holding Trust\u2019. Under this arrangement, the legal owner of those shares is LV Trust Limited. However, it does not hold those shares for its own benefit. Instead, the underlying beneficial owners are the beneficiaries of LV Holding Trust. This means that any income or capital that is distributed to LV Trust\u00a0 Limited (as the shareholder) will end up going to the beneficiaries of LV Holding Trust.<\/span><\/p>\n<\/div>\n\n\n\n The trustee of a trust can be an individual or a company<\/a>. A company that acts as a corporate trustee should not be engaging in any business activities and should only serve as the trustee of the trust. <\/p>\n\n\n\n As with all other companies, a corporate trustee will need to have at least one director and at least one shareholder. Generally, the share capital of a corporate trustee is nominal because the company itself will not have any inherent value. It only exists to act as a trustee company. Commonly, the directors or owners of a firm that provides corporate trustee services (usually an accounting or law firm) will be the directors and shareholders of a corporate trustee.<\/p>\n\n\n To protect your business, ensure supplier contracts meet your business\u2019 needs. Our free Commercial Contracts Checklist will help.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
\n Using a Corporate Trustee<\/span><\/h2>\n\n\n\n
\n ![\"Front](\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/12\/22115855\/cytonn-photography-GJao3ZTX9gU-unsplash-e1640129621597.jpg\")
\n Commercial Contracts Checklist<\/div>\n \n