NZ Initial Trustee Resolution

The Trustee(s) have a responsibility to keep clear and accurate records of their decisions and actions.

This document is the first resolution that the Trustee(s) will pass.

The Initial Trustee Resolution sets out important details such as:

- What property has been "settled" (given to) the Trust to start it off;
- Whether the Settlor(s) have provided additional guidance to the Trustee(s) (by way of a Memorandum of Wishes);
- How the Trust's bank account will be operated;
- Who the Trust's professional advisors will be.

Resolutions should be signed and dated by the Trustee(s) and safely stored.

Checklist is not available for this document.

Sample is not available for this document.

Lawyer
• Our family trust will just own our house. Do we need a lawyer?
Accountant
• Does our family trust need an accountant and/or financial advisor?
Financial Advisor
• Does our family trust need an accountant and/or financial advisor?
Bank Account for the Trust
• Does my Trust need a bank account?
• Do I need to involve all the Trustees to run the bank account?

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Lawyer

• Our family trust will just own our house. Do we need a lawyer?

  We recommend that you use a lawyer when you are transferring assets such as your house or other assets (such as investments) to your trust.
  
  While it is technically possible in New Zealand to transfer your house without using a lawyer it is a complicated area involving an asset of significant value and we don’t recommend that you try it.

  This hint is provided by Cavell Leitch.

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Accountant

• Does our family trust need an accountant and/or financial advisor?

  If your family trust just owns the house that you live in and doesn’t own any income-generating assets, then you probably don’t need an accountant or financial advisor.
  
  However, if your trust is going to own income-generating assets such as investments, shares or a business, then we strongly recommend that you use an accountant and/or a financial advisor to make sure the Trustees get good advice and act correctly.

  This hint is provided by Cavell Leitch.

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Financial Advisor

• Does our family trust need an accountant and/or financial advisor?

  If your family trust just owns the house that you live in and doesn’t own any income-generating assets, then you probably don’t need an accountant or financial advisor.
  
  However, if your trust is going to own income-generating assets such as investments, shares or a business, then we strongly recommend that you use an accountant and/or a financial advisor to make sure the Trustees get good advice and act correctly.

  This hint is provided by Cavell Leitch.

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Bank Account for the Trust

• Does my Trust need a bank account?

  Your Trust needs a bank account if it owns income-generating assets like investments, shares or a business.
  
  If your Trust only owns the house that you live in, then the Trust doesn't need a bank account.

  This hint is provided by Cavell Leitch.

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• Do I need to involve all the Trustees to run the bank account?

  This really depends on your personal circumstances. We don’t recommend that this power be given to only one Trustee. Generally, the more Trustees that are involved in operating the bank account, the lower the risk is that something will go wrong. However, when setting up the bank account, the Trustees need to have a workable structure, so if there is a Trustee that is hard to get hold of, this may slow down the Trust's ability to operate the account.

  This hint is provided by Cavell Leitch.

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This document has been prepared by Cavell Leitch