How to set up a family trust in New Zealand
Last updated 28 September 2026
A family trust is set up by a trust deed: a legal document in which a settlor places property with trustees, to hold for the beneficiaries. Setting one up is a job for a lawyer, and an accountant usually helps too. This guide explains the usual steps, so you know what to expect and what to keep once the trust exists.
Who is involved
- Settlor. The person who sets up the trust and puts property into it, often one or both parents.
- Trustees. The people who own and manage the trust property for the beneficiaries. Often the parents, sometimes with an independent trustee.
- Beneficiaries. The people the trust is for, usually the family, including children and grandchildren.
- Appointor. The person with the power to appoint and remove trustees, if the deed names one.
The usual steps
1. Be clear about why
People set up family trusts to look after the family home or savings for the next generation, or to plan for the future. A trust can affect tax, relationship property and eligibility for some government support, so talk it through with a lawyer and an accountant before deciding.
2. Choose the trustees, beneficiaries and appointor
Think about who will run the trust for many years, who it should benefit, and who can change the trustees if someone steps down or dies.
3. The lawyer drafts the trust deed
The deed sets the rules: who the beneficiaries are, what the trustees can and cannot do, how decisions are made, and when the trust ends. Many people also write a letter of wishes to guide the trustees.
4. Sign the deed
The settlor and trustees sign, and the trust exists from then. Every trustee should have a copy of the signed deed.
5. Register with Inland Revenue and open a bank account
The trust gets its own IRD number, and a bank account in the trustees’ names. From then on the trust has its own tax obligations, including a yearly return unless it qualifies as a non-active trust.
6. Move assets into the trust
Property is usually sold to the trust, with the price owed back as a loan, or gifted. There has been no gift duty in New Zealand since 2011. A transfer of land is registered with Land Information New Zealand by your lawyer. Write down every gift and loan, with its date and amount.
7. Start the records on day one
Keep the deed, the trustee and beneficiary details, the list of what the trust owns and owes, the loan and gift records, and a written resolution for each decision. The trust compliance checklist lists what the Trusts Act 2019 expects trustees to hold.
After the trust is set up
Every trustee has duties under the Trusts Act 2019, and some jobs come round each year: financial statements, the tax return, distribution decisions and a trustee review. How to manage and maintain your own family trust covers what that involves, and trustee duties explained covers the fifteen duties.
Trust Ready is an online portal that keeps a family trust’s records in one secure place and emails you before key dates. It is for trustees who look after their own trust. It does not set up trusts and is not legal advice.
Already have a trust?
The free trust check asks ten questions about your trust’s records and shows which parts need attention. It takes about two minutes and needs no account.