Family trusts have long been a popular tool for asset protection, business continuity, and managing intergenerational wealth. But just because you’ve set up a trust doesn’t mean it’s still doing what you originally intended. Rules have changed, life continues to evolve, and if you haven’t reviewed your trust in a while—it could be working against you instead of for you.
At Ingham Mora, we regularly work with business owners, farmers, and individuals throughout Tauranga and the wider Bay of Plenty to review and realign their trusts. Here are the key things to consider when checking if your trust is still fit for purpose.
Why trusts are set up
Many trusts in New Zealand were originally established to:
- Protect family assets
- Reduce personal risk for business owners
- Plan for long-term financial security
- Provide for children or dependents
- Create a degree of separation from income or property
But your life, and the legal landscape, might have changed significantly since then. If you set your trust up 10–15 years ago, it may no longer align with your current goals or responsibilities.
5 signs your trust may no longer be fit for purpose
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You haven’t reviewed your trust deed in years
The Trusts Act 2019 introduced major updates around trustee duties, beneficiary rights, and record keeping. If your trust hasn’t been reviewed since this legislation came into effect, you might not be compliant without realising it.
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Your trust’s purpose is unclear or outdated
Maybe your children have grown up, your business has changed hands, or your relationship status has changed. If the original purpose of the trust no longer exists, it may be time to consider repurposing—or winding it up.
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You don’t understand who actually controls the trust
Trusts must be genuinely controlled by the trustees—not by the person who originally set it up. If you’re unsure who has decision-making authority, or if one trustee has too much control, that can raise red flags with Inland Revenue or during legal disputes. You might even consider hiring a professional trustee.
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It’s become a tax headache
Trusts must file annual returns, and in some cases, they’re now subject to higher compliance scrutiny from the IRD. If your trust creates more admin than benefit—or if you’re unsure what’s deductible and what’s not—it’s time for a check-in.
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There’s no clear succession plan
Who will step in if your current trustee becomes incapacitated, retires, or passes away? A poorly managed handover could create stress for your family or business. If succession hasn’t been discussed, your trust may be at risk of disruption.
Common trust questions we hear from our clients
- Do I still need a trust if my kids are grown and the mortgage is paid off?
- What happens if I want to gift assets out of the trust?
- Can my trust still protect my business assets?
- Is it worth keeping the trust going, or should I consider dissolving it?
These are exactly the kinds of questions we work through with clients. There’s no one-size-fits-all answer—it depends on your current situation and future plans.
What a trust review involves
At Ingham Mora, our trust review includes:
- Analysing your trust deed and recent trustee decisions
- Reviewing the trust’s assets and financial performance
- Assessing compliance with the Trusts Act 2019
- Checking beneficiary distributions and documentation
- Providing advice on restructuring, dissolving, or maintaining the trust
- Ensuring your trust still aligns with your business and personal goals
- Confirming your memorandum of wishes is current and clearly reflects your intentions
We’re not here to sell you on keeping your trust—we’re here to help you make sure it’s working for you. If it’s not, we’ll suggest the best way forward.
How we help business owners and farmers in Tauranga
If you’re a local business owner or farmer, chances are you set up a trust to:
- Protect your home from business liability
- Separate business assets from personal wealth
- Provide for your family’s future
But if your business has grown (or perhaps scaled back), your trust might need to be restructured. We help our clients align their trusts with evolving business structures—whether that’s sole trader to company, adding shareholders, or buying/selling property.
We also assist with integrating trust decisions into your business accounting—so there’s no conflict between what your trust is doing and what your business books say.
Ready for a family trust check-up? Let’s talk
A trust should give you peace of mind—not confusion, stress, or unnecessary paperwork. Whether you’ve had your trust for years or just inherited the responsibility of being a trustee, it’s worth checking in.
Book a trust review with the Ingham Mora team today. We’ll help you understand what your trust is doing, what it should be doing, and what to do next.
The comments in this article are of a general nature and should not be relied on for specific cases, where readers should seek professional advice.