Annual trust review checklist NZ | Free

Annual trust review checklist

Once a year, the trustees should step back and look at the whole trust. Work through each item, mark where it stands, and print the checklist for your records.

The review

Trust name

Date of the review

Trustees taking partOne name per line.

The deed

We know where the original signed deed and any variations are.

All trustees have read the deed, or a summary, in the last two years.

We know who can appoint and remove trustees, and that person is still able and willing.

Trustees and beneficiaries

The list of trustees is current, and titles and bank accounts match it.

We have an up to date list of beneficiaries.

Adult beneficiaries have been given basic trust information, or we have recorded why not.

Assets and money

The list of what the trust owns and owes is up to date.

Gifts and loans to and from the settlor are recorded.

Trust property is insured where it should be.

We have considered how trust money is invested.

Decisions and records

Every trustee decision this year is written down as a minute or resolution.

Any situation where a trustee personally benefits is recorded.

The core trust documents are kept together, and every trustee can get to them.

Tax and accounts

Financial statements have been prepared for the year.

The trust tax return and the Inland Revenue trust disclosures have been filed.

Looking ahead

The trust still suits its purpose and the family’s circumstances.

Any letter or memorandum of wishes is still current.

We have set a date for next year’s review.

Notes and actions

Preview

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Why review the trust every year

Trustees are expected to actively and regularly consider how they use their powers. A trust cannot be set up and left alone. A short annual review is the simplest way to show the trustees are doing that, and to catch problems while they are still small.

Most reviews take under an hour. Do it soon after the trust’s financial year ends, when the accounts are fresh. For most New Zealand trusts that is after 31 March.

Tips

Anything marked “Needs action” should become a named task with a date.
Record the review in the trustee minutes, and file this checklist with them.
If there has been a big change, such as a death, a separation or the sale of the family home, talk to your lawyer.

This is a general template. It may not suit your trust deed or your circumstances. If in doubt, ask your lawyer.

Not sure what else your trust is missing?

Ten questions, two minutes, free. You get a score out of ten and a list of what is worth checking.

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