{"id":1749,"date":"2020-12-21T01:37:15","date_gmt":"2020-12-21T01:37:15","guid":{"rendered":"https:\/\/nz.legalvision.com.au\/?p=1749"},"modified":"2022-10-31T13:04:16","modified_gmt":"2022-10-31T00:04:16","slug":"what-is-the-difference-between-a-corporate-trustee-and-an-individual-trustee-in-nz","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/what-is-the-difference-between-a-corporate-trustee-and-an-individual-trustee-in-nz\/","title":{"rendered":"Corporate vs Individual Trustees in NZ"},"content":{"rendered":"\n

When you are setting up a trust, a key part of the process is deciding who you would like for your trustees. This depends on the purpose of your trust, and how you want it to function in the future. Depending on those circumstances, who you choose for your trustees may change. This article will explain two possible kinds of trustees you can choose from: corporate trustee<\/a> or individual trustee. It will also cover what trustees duties are and how this plays out in the overall functioning of the trust itself.<\/span><\/p>\n\n\n\n

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What is a Trust?<\/span><\/h2>\n\n\n\n

A trust is a way that you can manage your assets and gain income from them, without owning the assets yourself. This means that you have a variety of protections available to you. It works like this:<\/span><\/p>\n\n\n\n

You, the settlor, gives or sells your assets (such as real estate, a business, or other capital) to another person (the trustee) to manage and maintain. The trustee manages and maintains the trust assets for the benefit of someone else (the beneficiary). The settlor can be a trustee or a beneficiary, or even both. The trust is the legal relationship between these people. It is its own entity for tax purposes, but in any other legal way it is not. Benefits to a trust can include:<\/span><\/p>\n\n\n\n