NZ Deed of Gift

The most common way for people to put assets into their Family Trust is to "gift" the assets to their Trust.

People are able to give assets to their family trusts without creating a tax liability for the Trust because of the "natural love and affection" that exists between the person making the gift and the beneficiaries of the Trust.

Generally, people transfer "appreciating" assets to their Trusts, that is, assets that grow in value over time like residential and commercial property, and investments such as shares and cash.

The Deed of Gift provides evidence that the gift has occurred.

Checklist is not available for this document.

Sample is not available for this document.

Donor Details
• Who is the right person to make the gift?
Asset
• Are there restrictions on what I can give my Family Trust?
• Why do I need to give an estimated value for the asset(s) that I'm gifting?
• I don't know the value, do I need to get a valuer?

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Donor Details

• Who is the right person to make the gift?

  The person who owns the property that is being given to the Trust needs to make the gift.

  This hint is provided by Cavell Leitch.

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Asset

• Are there restrictions on what I can give my Family Trust?

  You can give your Family Trust whatever you like. In the past, people didn’t generally give more than $27,000 per year to their Trust because gift duty applied to any gifts worth more than $27,000 per year. As of 1 October 2011, the New Zealand Government abolished gift duty.
  
  Even though there aren’t any restrictions on what you can give your Trust, there are still things you should consider before you make a gift. For example, if you make a gift:
  
  - in circumstances where your financial situation is precarious, the gift may be “clawed back” from your Trust.
  - while you are in a relationship, that gift could be subject to challenge if your relationship ends.
  - and then you want a Government subsidy, you may not be eligible.
  - and you loose or don’t have control of your Family Trust, you could loose the use and benefit of the property that you gifted.
  
  Gifting can have far reaching implications and you should get specialist advice before making gifts.
  

  This hint is provided by Cavell Leitch.

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• Why do I need to give an estimated value for the asset(s) that I'm gifting?

  The value of the gift will be important if the gift is reviewed or challenged in the future.

  This hint is provided by Cavell Leitch.

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• I don't know the value, do I need to get a valuer?

  An estimated value is sufficient. For example, if you are gifting a house to your Trust, you can use the Capital Value (also known as the rateable value) of the house.

  This hint is provided by Cavell Leitch.

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This document has been prepared by Cavell Leitch